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

question 109

Multiple Choice

The following graph shows market equilibrium in the presence of an externality. The socially efficient price and level of output are:​ ​
Figure 17.2
​

• A)$6 and 50 units, respectively
• B)$12 and 50 units, respectively
• C)$12 and 40 units, respectively
• D)$6 and 40 units, respectively
• E)less than $6 and more than 50 units, respectively

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Definitions:

Directional Selection

A type of natural selection that favors one extreme phenotype over another, causing the allele frequency to shift in one direction.

Disruptive Selection

A form of natural selection where extreme values for a trait are favored over intermediate values, potentially leading to the evolution of distinct forms within a population.

Stabilizing Selection

A type of natural selection that favors the average individuals in a population, reducing variation around the mean phenotype.

Antibiotic Resistance

The ability of bacteria to withstand the effects of antibiotics, often through genetic mutations or acquisition of resistance genes.