Use the Figure Below to Answer the Following Question

question 122

Multiple Choice

Use the figure below to answer the following question. Figure 6.4.1
-Refer to Figure 6.4.1.The graph shows the market for tomatoes.When the government introduces a subsidy for tomatoes at $4 a kilogram,the quantity produced is ________ because ________.

• A)efficient;marginal social cost is less than marginal social benefit
• B)efficient;marginal social benefit equals marginal social cost
• C)inefficient;marginal social cost is less than marginal social benefit
• D)inefficient;marginal social benefit is less than marginal social cost
• E)inefficient;marginal social cost is zero

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Conversion Rate

The percentage of users who take a desired action, such as making a purchase or signing up for a newsletter.

Zero Coupon Bond

A bond that does not pay periodic interest but is issued at a discount from its face value and matures at that face value, effectively creating a fixed rate of return.

Equity

The value of an ownership interest in a company, represented by the share of assets after all liabilities have been deducted.