Figure: Positive Externalities and the Production of Semiconductor Chips

question 199

Multiple Choice

Figure: Positive Externalities and the Production of Semiconductor Chips (Figure: Positive Externalities and the Production of Semiconductor Chips) Look at the figure Positive Externalities and the Production of Semiconductor Chips.If the socially optimal production of chips is 500, the government could achieve the socially optimal level of production by granting a Pigouvian subsidy of:

• A)$5.
• B)$10.
• C)$15.
• D)$20.

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Definitions:

Deposit

A deposit is a sum of money placed in a financial institution for safekeeping, which can earn interest over time, commonly used in banking for savings or checking accounts.

Beginning

The point in time or space at which something starts.

Yearly Payments

Payments that are made once a year, often related to loans, annuities, or insurance policies.

Annual Payments

Regular amounts paid once a year, often used in the context of loan repayments or investment returns.