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:

Potential Stress Component

An element in a person's environment or in their psychological makeup that has the ability to cause stress or anxiety.

Operational Definition

A clear, precise definition of a study variable in terms of the specific methods or procedures used to measure or identify it.

Independent Variable

In an experiment, the variable that is manipulated to test its effects on the dependent variable, to determine causality.

Convenience Sampling

A non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher.