Use the figure below to answer the following question(s).
Figure 6-2
-Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. In which case is the incentive of producers and consumers to economize the strongest?

Question

Use the figure below to answer the following question(s).
Figure 6-2 
-Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. In which case is the incentive of producers and consumers to economize the strongest?

Quizplus · Accepted Answer

In case A, both production and consumption are private, meaning that both producers and consumers directly bear the costs and benefits, creating the strongest incentive to economize.

Use the Figure Below to Answer the Following Question(s)