Multiple Choice
Use the figure below to answer the following question. Figure 6.4.1
-Refer to Figure 6.4.1.The graph shows the market for tomatoes.When the government introduces a subsidy for tomatoes at $4 a kilogram,the quantity produced is ________ because ________.
A) efficient;marginal social cost is less than marginal social benefit
B) efficient;marginal social benefit equals marginal social cost
C) inefficient;marginal social cost is less than marginal social benefit
D) inefficient;marginal social benefit is less than marginal social cost
E) inefficient;marginal social cost is zero
Correct Answer:

Verified
Correct Answer:
Verified
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