Use the Table Below to Answer the Following Questions

question 32

Multiple Choice

Use the table below to answer the following questions.
Table 16.3.1

-Refer to Table 16.3.1.The table shows marginal private benefit and the marginal social benefit from the consumption of chemical fertilizer and the marginal social cost of the production of fertilizer.If production is left to the private market,then

• A)an efficient quantity is produced.
• B)imposing a tax leads to production of the efficient quantity.
• C)too much fertilizer is produced.
• D)a system of marketable permits leads to production of the efficient quantity.
• E)an inefficient quantity is produced.

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Definitions:

Residual Income

The amount of income that an individual or company retains after accounting for all costs and expenses.

Producer Price Index

An economic indicator that measures the average changes in prices received by domestic producers for their output.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.