Solved

-The Figure Above Shows the Market for Milk in Cowland

Question 387

Multiple Choice

-The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the marginal cost of the last gallon of milk produced is A) $3.00 a gallon. B) $3.50 a gallon. C) $4.00 a gallon. D) $4.50 a gallon.
-The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the marginal cost of the last gallon of milk produced is


A) $3.00 a gallon.
B) $3.50 a gallon.
C) $4.00 a gallon.
D) $4.50 a gallon.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q382: Explain why a price floor set below

Q383: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The figure above

Q384: How does the elasticity of demand for

Q385: Which of the following outcomes is NOT

Q386: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The figure above

Q388: The incidence of sales tax is determined

Q389: "A price floor that is less than

Q390: In the Village of Punjab, Sheryl owns

Q391: Economists generally agree that increases in the

Q392: The opportunity cost of buying a good