Figure 11-1 Shows the Marginal Internal Cost [C₁], the Marginal

question 43

Multiple Choice

Figure 11-1 shows the marginal internal cost [C₁], the marginal total cost [C₂], and the demand curve [D], associated with a particular good.

-Refer to Figure 11-1. In the presence of externalities, what is the efficient price and quantity combination in the market?

• A) $5 and 10 units
• B) $7 and 10 units
• C) $7 and 15 units
• D) $5 and 15 units
• E) $8 and 8 units

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Definitions:

Twin Pairs

Two individuals born at the same time to the same mother, used in research to study the effects of genetics vs. environment.

Adoption

The process through which an individual legally takes another person, usually a child, to be their own child, assuming all parental rights and responsibilities.

Intelligence Scores

Numeric values assigned from performance on tests designed to measure cognitive abilities and potential.

Fraternal Twins

Twins that are born from the fertilization of two different eggs by two different sperm, resulting in siblings that are genetically unique from each other.