Table 10-2 the Following Table Shows the Private Value, Private Cost, and Cost

question 454

Multiple Choice

Table 10-2
The following table shows the private value, private cost, and social value for a market with a positive externality.
-Refer to Table 10-2. What is the socially-optimal level of output in this market?

• A)3 units
• B)4 units
• C)5 units
• D)6 units

---

Definitions:

Regression Equation

A mathematical formula that describes the relationship between two or more variables, typically identifying how one dependent variable changes as an independent variable(s) changes.

Y-intercept

The location on a graph where a line or curve intersects with the y-axis.

Multiple Correlation

A statistical technique that measures the strength of the relationship between a dependent variable and two or more independent variables.

Predictors

Variables in statistical models that are used to forecast or estimate another variable of interest.