Table 10-4 -Refer to Table 10-4. Which of the Following Policies Would

question 215

Multiple Choice

Table 10-4
-Refer to Table 10-4. Which of the following policies would move the market from the market equilibrium to the socially optimal equilibrium?

• A)a tax of $4 per unit of output
• B)a subsidy of $4 per unit of output
• C)a tax of $6 per unit of output
• D)a subsidy of $6 per unit of output

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Definitions:

Average Cash Balance

The mean amount of cash held by a company over a specific period of time.

Weighted Average Delay

The average time delayed, taking into account the importance or weight of each component being delayed.

Collection Delay

The amount of time it takes for a business to receive the payment after it has issued an invoice.

Average Amount

The mean value obtained by dividing the sum of all values by the number of values.