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    Principles of Microeconomics Study Set 10
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    Exam 10: Externalities
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    Figure 10-4 -Refer to Figure 10-4. This Market
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Figure 10-4 -Refer to Figure 10-4. This Market

Question 455

Question 455

Multiple Choice

Figure 10-4 Figure 10-4   -Refer to Figure 10-4. This market A) has no need for government intervention. B) would benefit from a tax on the product. C) would benefit from a subsidy for the product. D) would maximize total well-being at Q<sub>3</sub>.
-Refer to Figure 10-4. This market


A) has no need for government intervention.
B) would benefit from a tax on the product.
C) would benefit from a subsidy for the product.
D) would maximize total well-being at Q3.

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