Refer to the Accompanying Table, Where Q Represents the Quantity

question 31

Multiple Choice

Refer to the accompanying table, where Q represents the quantity produced, internal cost and social cost are given for various quantities, and P represents the price consumers are willing to pay for various quantities. $\begin{array}{lll}Q&\text { Internal Cost }&\text { Social Cost }&P\\100&\$ 40 & \$ 60 & \$ 80 \\200&\$ 50 & \$ 70 & \$ 70 \\300&\$ 60 & \$ 80 & \$ 60 \\400&\$ 70 & \$ 90 & \$ 50 \\500&\$ 80 & \$ 100 & \$ 40 \\600&\$ 90 & \$ 110 & \$ 30\end{array}$ The social optimum occurs where price is _________ and quantity is _________.

• A) $70; 200
• B) $50; 200
• C) $60; 300
• D) $80; 300
• E) $60; 100

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Definitions:

Registered Design

A legal protection for the visual design of objects that are not purely utilitarian, ensuring exclusive rights to the design holder.

Manufacturer

An entity or individual that makes goods for sale using raw materials and components.

Copyright Act

Legislation that protects the rights of creators by giving them exclusive control over the use and distribution of their original works.

Confidential Information

Any information that is not public knowledge and that is obtained from a source under circumstances that create an obligation to keep it confidential.