Use the Following to Answer Question

question 208

Multiple Choice

Use the following to answer question:
-(Table: Market for Fried Twinkies) Use Table: Market for Fried Twinkies.If the government imposes a quota of 5,000 on the fried Twinkie market,the quota rent per fried Twinkie will be:

• A)$1.20.
• B)$0.30.
• C)$1.50.
• D)$1.00.

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Definitions:

Marginal Social Cost

The additional cost imposed on society as a whole from producing one more unit of a good or service.

Socially Optimal

is a condition or outcome in which the allocation of resources maximizes the overall benefit to society.

Nonexcludable

A characteristic of a good whereby it is difficult or impossible to prevent people who have not paid for it from consuming or using it.

Rival

An entity competing against another in the same market or field.