-The Figure Above Shows the Market for a Good with an External

question 116

Multiple Choice

-The figure above shows the market for a good with an external benefit.If the market is competitive and the government takes no action,the equilibrium quantity of ________ units is inefficient because ________.

• A) 8; marginal benefit exceeds marginal cost
• B) 8; marginal cost exceeds marginal benefit
• C) 10; marginal cost exceeds marginal benefit
• D) 10; marginal social benefit exceeds marginal benefit
• E) 10; marginal external benefit exceeds marginal social benefit

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Definitions:

IV Antibiotic

A treatment method involving antibiotics administered directly into the bloodstream through an intravenous line to treat infections.

Peak Action

The time at which a medication reaches its highest effective concentration in the body.

Trough Levels

The lowest concentration of a drug in the bloodstream, typically measured to ensure therapeutic levels are maintained without reaching toxic levels.

Onset of Action

The time it takes after a drug is administered for it to produce its therapeutic effect.