Figure 4-8 Figure 4-8 Shows a Market with an Externality.The

question 164

Multiple Choice

Figure 4-8 Figure 4-8 shows a market with an externality.The current market equilibrium output of Q₁ is not the economically efficient output.The economically efficient output is Q₂.
-Refer to Figure 4-8.If,because of an externality,the economically efficient output is Q₂ and not the current equilibrium output of Q₁,what does S₁ represent?

• A)the market supply curve reflecting external cost
• B)the market supply curve reflecting implicit cost
• C)the market supply curve reflecting social cost
• D)the market supply curve reflecting private cost

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Definitions:

Product Structure

The organization of a company’s product lines or portfolio, detailing how products are interrelated or grouped.

Functional Structure

an organizational configuration that groups together employees based on their specific functions or roles within the company.

Divisional Structural Form

An organizational structure where operations are divided into autonomous divisions based on product, service, market, or geographic location.

Matrix Structure

An organizational structure that combines two or more types of departmentalization, often product and functional, giving rise to a complex grid of interdepartmental relationships.