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Use the Following Figure to Answer the Question : Figure

Question 46

Multiple Choice

Use the following figure to answer the question : Figure 20-2 : shows the competitive supply curve of a commodity is given by S1,the private marginal benefit curve is D1,the marginal social benefit curve is D2,and the MBE curve reflects the marginal external benefits. Use the following figure to answer the question : Figure 20-2 : shows the competitive supply curve of a commodity is given by S<sub>1</sub>,the private marginal benefit curve is D<sub>1</sub>,the marginal social benefit curve is D<sub>2</sub>,and the MB<sub>E</sub> curve reflects the marginal external benefits. -In Figure 20-2,the price level when the efficient output is being produced is _____ than the price level when the market equilibrium output is being produced by _____. A) less;$8 B) more;$4 C) less;$3 D) more;$3
-In Figure 20-2,the price level when the efficient output is being produced is _____ than the price level when the market equilibrium output is being produced by _____.


A) less;$8
B) more;$4
C) less;$3
D) more;$3

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