-In the Above Figure, Market Equilibrium at Point E Yields

question 178

Multiple Choice

-In the above figure, market equilibrium at point E yields the quantity X. The quantity is socially optimal amount. The government can achieve the optimal outcome by

• A)setting the price at .
• B)establishing a tax of - per unit of the good sold.
• C)establishing a tax of - per unit of the good sold.
• D)setting the price at .

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Definitions:

Decreasing Costs

The process of reducing expenses and outlays in a business in order to improve profitability and efficiency.

Deep-Level Diversity

Differences in verbal and nonverbal behaviors that are not as easily perceived because they lie below the surface, such as differences in attitudes, values, beliefs, and personality.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing how they think, feel, and behave.

Surface-Level Diversity

Easily perceived differences between people, such as age/generation, race/ethnicity, gender, and ability.