Use the Following to Answer Question

question 123

Multiple Choice

Use the following to answer question:
Figure: Model of a Competitive Market
-(Figure: Model of a Competitive Market) Use Figure: Model of a Competitive Market.Given the figure,if there are external costs:

• A)resources will be underallocated to the production of the good.
• B)resources will be overallocated to the production of the good.
• C)resources will be efficiently allocated to the production of the good.
• D)the price at P will be higher than if there were no external costs.

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Definitions:

Current Tax Liability

The amount of income taxes a company is obligated to pay to governmental authorities within the next fiscal period.

Tax Deductible

Tax deductible refers to certain expenses or investments that can be subtracted from gross income to reduce the amount of income subject to tax.

Depreciation

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to use and wear and tear.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.