-The Table Above Describes the Market for Paper

question 88

Multiple Choice

-The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. Now suppose a Pigovian tax is successfully implemented and the efficient quantity of paper is produced. What is the total tax revenue collected by the government per week?

• A) $120
• B) $1,800
• C) $840
• D) $1,200

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Definitions:

Median

The middle value in a list of numbers, which separates the higher half of the data sample from the lower half.

Percentile Points

Percentile points are values that divide a set of observations into 100 equal parts, indicating the percentage of data points that fall below a certain value.

Q1

The first quartile in a data set, representing the median of the lower half of the data set, or the 25th percentile.

Skew

A measure of the asymmetry or deviation from symmetry in a distribution of data, which can be positive or negative.