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Use the Following Graph to Answer Questions

Question 27

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Use the following graph to answer questions Use the following graph to answer questions -Consider the graph that illustrates the production of electricity where not all of the costs of production are captured in the private costs.Which of the following statements is true? A) An output of Q<sub>Private</sub> provides an optimal allocation of resources to the market. B) An output of Q<sub>Private </sub>provides an efficient allocation of resources to the market. C) An output of Q<sub>Social</sub> provides an optimal allocation of resources to the market. D) An output of Q<sub>Private</sub> minus Q<sub>Social</sub> provides an efficient allocation of resources to the market.
-Consider the graph that illustrates the production of electricity where not all of the costs of production are captured in the private costs.Which of the following statements is true?


A) An output of QPrivate provides an optimal allocation of resources to the market.
B) An output of QPrivate provides an efficient allocation of resources to the market.
C) An output of QSocial provides an optimal allocation of resources to the market.
D) An output of QPrivate minus QSocial provides an efficient allocation of resources to the market.

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