-The Figure Above Shows the Market for a Good with an External

question 57

Multiple Choice

-The figure above shows the market for a good with an external benefit. If the government wants to grant a subsidy so that the efficient quantity is produced, the subsidy must equal ________ per unit.

• A) $50
• B) $100
• C) $250
• D) $300
• E) $150

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Definitions:

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through various methods such as teaching, training, research, and discussion.

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services.

New Approaches

Innovative or alternative methods and strategies introduced to address issues or improve existing processes.

Standard of Living

The measure of affluence, convenience, tangible assets, and basic needs present for a particular economic group or location.