-Refer to the Diagram Above

question 180

Multiple Choice

-Refer to the diagram above.If S1 contains the entire amount of the external cost,then

• A) too little was being produced.
• B) demand was too large.
• C) the socially optimal amount of production,and hence the socially optimal amount of the external cost,is not zero.
• D) Q3 production is excessive.
• E) the marginal benefit of Q3 is less than the marginal social cost.

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Definitions:

Cash Flow to Stockholders

The amount of cash that a company returns to its shareholders, typically in the form of dividends.

Cash Flow to Stockholders

The amount of cash a company pays out to its shareholders, typically in the form of dividends.

Net Income

A company's final income, arrived at after subtracting expenses, taxes, and costs from its complete revenue.

Dividends Paid Per Share

The amount of dividend that a company pays out to its shareholders for each share owned.