Refer to Scenario 16

question 259

Multiple Choice

Refer to Scenario 16.1 below to answer the question(s) that follow.
SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.
-Refer to Scenario 16.1. The efficient output level is ________ and the efficient price is ________.

• A) 10 units of food; $20
• B) 6 units of food; $24
• C) 0 units of food; $0
• D) 4.29 units of food; $25.71

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Definitions:

Satisfied Individuals

Persons who experience fulfillment or contentment in aspects of their life or work.

Flaws

Imperfections, faults, or weaknesses that detract from perfection and can affect performance or function.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Stagnant

Characterized by lack of movement, flow, or growth, often suggesting something that has become stale or obsolete due to inactivity or lack of change.