Figure 10-10 -Refer to Figure 10-10. the Socially Optimal Quantity of Output

question 158

Multiple Choice

Figure 10-10
-Refer to Figure 10-10. The socially optimal quantity of output is

• A) 120 units, since the value to the buyer of the 120th unit is equal to the cost incurred by the seller of the 120^th unit.
• B) 120 units, since the value to the buyer of the 120th unit is equal to the cost incurred by society of the 120^th unit.
• C) 160 units, since the value to the buyer of the 160th unit is equal to the cost incurred by the seller of the 160th unit.
• D) 160 units, since the value to the buyer of the 160th unit is equal to the cost incurred by society of the 160^th unit.

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Definitions:

Alternatives

Different options or choices available in a given situation.

Monitoring

The regular observation and recording of activities or processes to ensure they are proceeding as expected.

Tactical Plan

A plan that helps to implement all or parts of a strategic plan.

Strategic Plan

A plan that identifies long-term directions for the organization.