Refer to Figure 5-6. What does D2 represent?

A) the demand curve reflecting marginal social benefits
B) the positive externalities curve
C) the demand curve reflecting marginal private benefits
D) the social welfare curve


A

Economics

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A defendant believes there is a 70 percent chance that the plaintiff will win $200,000, a 10 percent chance the plaintiff will win $150,000 and a 20 percent chance the plaintiff will lose and receive nothing (zero). If the defendant's litigation cost is $100,000, what is the defendant's expected loss from the litigation?

A) $150,000 B) $255,000 C) $300,000 D) $155,000

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Protectionist policies often seek to shield domestic producers and domestic workers from ________ competition.

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