The Following Graph Shows Market Equilibrium in the Presence of an Externality

question 132

Multiple Choice

The following graph shows market equilibrium in the presence of an externality in an economy. The socially efficient level of output is _____.​ ​
Figure 17.1
​

• A)0 units
• B)100 units
• C)between 0 and 100 units
• D)160 units
• E)between 100 and 160 units

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Definitions:

Efficiency

The ability to accomplish a job with a minimum expenditure of time and resources.

Heuristics

Problem-solving methods or strategies that employ practical, experiential approaches rather than guaranteed, optimal solutions.

Layout Problems

Layout problems involve the arrangement of physical facilities, equipment, and workspaces to optimize processes and operations efficiency.

Product Layouts

The arrangement of machinery, equipment, and workstations in a production facility to optimize the workflow and manufacturing process.