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

question 77

Multiple Choice

-The figure above shows the market for a good with an external benefit.The efficient level of production is ________ units because ________.

• A) 8; marginal benefit equals marginal cost
• B) 8; marginal cost is less than marginal social benefit
• C) 10; marginal cost equals marginal social benefit
• D) 10; marginal social benefit exceeds marginal benefit
• E) 8; marginal benefit equals the marginal external benefit

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Definitions:

British Troops

Military forces from the United Kingdom, involved in various historical and contemporary conflicts and peacekeeping missions around the world.

Lord North

A British statesman who served as Prime Minister from 1770 to 1782, notably during a significant portion of the American Revolutionary War.

Liberty

The condition of enjoying freedom in society from authoritarian-imposed constraints on one's lifestyle, actions, or political beliefs.

Parliament

The supreme legislative body in many countries, including the United Kingdom, consisting of elected representatives who have the power to make laws.