-Refer to the Above Figure $P _ { 2 }$
B)

question 111

Multiple Choice

-Refer to the above figure.An external cost exists.The amount of that cost is represented by

• A) \(P _ { 2 }\) .
• B) \(\mathrm { Q } _ { 1 }\) .
• C)the vertical distance between point A and the supply curve S1.
• D)the distance between C and A.

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Definitions:

Economic Rationality

The assumption that individuals make decisions based on maximizing utility or profit within constraints, following a logical and efficient approach.

Marginal Utility

The change in satisfaction or utility that a consumer experiences from consuming an additional unit of a good or service.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Soft Drink Dispensing

The process or equipment used for serving soft drinks, typically seen in restaurants, convenience stores, or vending machines.