Use the Following to Answer Question

question 266

Multiple Choice

Use the following to answer question:
-(Figure and Table: The Market for Taxi Rides) Use Figure and Table: The Market for Taxi Rides.The figure represents a competitive market for taxi rides.If the government imposes an excise tax of $2 per ride (causing the supply curve to shift upward by that amount) ,then the government will collect tax revenues of _____,BUT the tax will cause a _____ deadweight loss to society.

• A)$8 million;$1 million
• B)$16 million;$2 million
• C)$24 million;$4.5 million
• D)$48 million;$6 million

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Definitions:

Repetitive Focus

A manufacturing strategy that emphasizes producing large volumes of the same product or service, aiming for efficiency and consistency in output.

Cross-Over Point

The point at which two different options or systems result in the same level of cost or benefit, making them equally preferable under the conditions given.

Variable Cost

Costs that vary in direct proportion to changes in the level of production or activity, such as materials and labor.

Highly Automated

Systems or processes that operate with minimal human intervention, utilizing advanced technology and machinery for efficiency and precision.