Multiple Choice
Use the figure below to answer the following questions.
Figure 16.2.1
-Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. If a constant per unit tax is imposed that generates an efficient allocation of resources, then consumers pay a per unit price of
A) zero.
B) P₁.
C) P₂.
D) P₃.
E) P₄.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Most governments subsidize basic education because<br>A)there are
Q19: Research and development _ create an external
Q35: Use the table below to answer the
Q37: Use the table below to answer the
Q39: Use the figure below to answer the
Q41: Use the table below to answer the
Q43: If positive externalities exist and production is
Q45: In the absence of government intervention, a
Q56: The Coase theorem applies when transactions costs
Q65: If the production of a good creates