Consider a Competitive Market with a MPB = 22 -

question 9

Multiple Choice

Consider a competitive market with a MPB = 22 - q and a MPC = 10 +q.There is a negative production externality of e = q, where q is the level of output in the market, the government can achieve the efficient level of output by:

• A)Implementing a per-unit tax of $4 on suppliers.
• B)Implementing a per-unit tax of $6 on suppliers.
• C)Implementing a per-unit tax of $8 on suppliers.
• D)Implementing a per-unit tax of $10 on suppliers.
• E)None of the above.

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Definitions:

Phoneme

The smallest unit of sound in a language that can distinguish one word from another, such as the difference between the sounds /p/ and /b/.

Particular Sound

refers to a specific auditory stimulus or noise that is distinct or unique in its characteristics.

Cochlear Implant

A device that transforms sounds into electric pulses that directly stimulate the auditory nerve, bypassing the malfunctioning inner ear that ordinarily processes sound.

Auditory Nerve

A cranial nerve that transmits sound information from the cochlea in the inner ear to the brain.