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Use the Table Below to Answer the Following Questions

Question 32

Multiple Choice

Use the table below to answer the following questions.
Table 16.3.1
Use the table below to answer the following questions. Table 16.3.1    -Refer to Table 16.3.1. The table shows marginal private benefit and the marginal social benefit from the consumption of chemical fertilizer and the marginal social cost of the production of fertilizer. An efficient quantity is produced if the government A) subsidizes production by $20 per unit. B) subsidizes production by $10 per unit. C) provides vouchers for consumption of $20 per unit. D) taxes production by $10 per unit. E) either A or C.
-Refer to Table 16.3.1. The table shows marginal private benefit and the marginal social benefit from the consumption of chemical fertilizer and the marginal social cost of the production of fertilizer. An efficient quantity is produced if the government


A) subsidizes production by $20 per unit.
B) subsidizes production by $10 per unit.
C) provides vouchers for consumption of $20 per unit.
D) taxes production by $10 per unit.
E) either A or C.

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