Table 10-3
​
​ -Refer to Table 10-3

question 59

Multiple Choice

Table 10-3
​
​
$$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Private Value } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Private Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { External Benefit } \\\text { (Dollars) }\end{array} \\\hline 1 & 22 & 12 & 10 \\\hline 2 & 20 & 15 & 10 \\\hline 3 & 18 & 18 & 10 \\\hline 4 & 16 & 21 & 10 \\\hline 5 & 14 & 24 & 10 \\\hline 6 & 12 & 27 & 10 \\\hline\end{array}$$
-Refer to Table 10-3. What amount of subsidy per unit of output would move the market from the equilibrium level of output to the socially optimal level of output?

• A)$2
• B)$3
• C)$5
• D)$10

---

Definitions:

μ

The symbol commonly used to represent the mean or average in statistics and mathematics.

M/D/1

A notation in queueing theory that represents a system with a single server, where arrivals follow a Markovian (Poisson) process, service times are deterministically fixed, and there is only one server.

Constant Service Time

A situation in operational management where the service time remains the same for all customers or objects being serviced.

Units Arrive

Refers to the point in time when individual items or batches of product reach a designated location in a supply chain or manufacturing process.