When Farmers Raise Hogs,there Are a Number of External Costs

question 59

Multiple Choice

When farmers raise hogs,there are a number of external costs.In particular,hogs generate methane gas.If the marginal external cost is $100 per hog and the government imposes a tax of $200 per hog,then at the equilibrium price and quantity of hogs:

• A)too few hogs will be raised.
• B)the price will be less than the marginal social cost.
• C)the price will be less than the marginal social benefit.
• D)the price will be less than the marginal cost to hog farmers.

---

Definitions:

Uncertainty Principle

A fundamental concept in quantum mechanics proposed by Werner Heisenberg, stating that the position and momentum of a particle cannot both be precisely measured at the same time.

Abstract Principles

Fundamental ideas or concepts that are not tied to any specific concrete instance or physical manifestation but serve as the foundation for further reasoning or conduct.

Legal Ecosystem

The complex network of laws, regulations, institutions, and actors that constitute the legal environment within a jurisdiction.

Complex Adaptive System

A system that is composed of multiple interconnected elements, which adapt or learn from their interactions with their environment.