Suppose a Per- Unit Tax Is Imposed on a Firm's

question 47

Multiple Choice

Suppose a per- unit tax is imposed on a firm's output which makes the marginal private cost of production equal to the marginal social cost.In this case,we can then say that

• A)the externality has been fully internalized for that firm.
• B)the firm will make losses as its costs have increased.
• C)the firm will be forced by the extra cost burden to leave the industry.
• D)the internality has been externalized for that firm.
• E)the firm will not make any changes to its output decision.

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Definitions:

Longitudinal Study

A research method that involves repeated observations of the same variables over short or long periods of time.

Arranged Marriages

Marital unions where the partners are selected by individuals other than the ones getting married, often by family members.

Love Marriages

denote marital unions based primarily on romantic love between partners, as opposed to arranged marriages.

Consummate Love

Sternberg argues that this is the ultimate form of love, involving passion, intimacy, and commitment.