Use the Figure Below to Answer the Following Questions

question 86

Multiple Choice

Use the figure below to answer the following questions. Figure 16.3.2
-Figure 16.3.2 shows the marginal private cost cure,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.To achieve an efficient quantity,the price of an ITQ is set at

• A)$7.50 per litre of milk.
• B)$2.00 per litre of milk.
• C)$6.00 per litre of milk.
• D)$1.50 per litre of milk.
• E)$4.40 per litre of milk.

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Definitions:

Social Respect

The regard and consideration shown by individuals or societies toward others based on perceived value or status.

Attitude-improving Feedback

Constructive feedback aimed at encouraging positive changes in someone's behavior or outlook.

Judgments

The cognitive processes of forming opinions or conclusions based on information and reasoning.

Pessimism

A tendency to focus on the negative aspects of life or to expect the worst possible outcome in any given situation.