Figure 10-14 -Refer to Figure 10-14. Which of the Following Statements Is

question 413

Multiple Choice

Figure 10-14
-Refer to Figure 10-14. Which of the following statements is correct?

• A)To induce firms to internalize the externality in this market, the government should impose a tax measured by P₂ - P₀.
• B)To induce firms to internalize the externality in this market, the government should offer a subsidy measured by P₂ - P₀.
• C)To induce firms to internalize the externality in this market, the government should impose a tax measured by P₂ - P₁.
• D)There is no externality in this market.

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Definitions:

Consumer

An organism that obtains its energy by eating other organisms, unable to produce its own food through photosynthesis or chemosynthesis.

Biomes

Large ecological areas on the planet's surface, with flora and fauna adapting to their environment, such as forests, deserts, and grasslands.

GIS System

Geographical Information System, a tool that captures, stores, analyzes, and manages geographically referenced data.