-Which of the Following Is NOT True About the $3

question 311

Multiple Choice

-Which of the following is NOT true about the $3 per pizza tax illustrated in the above figure?

• A) It decreases consumer surplus by $90 thousand.
• B) It decreases producer surplus by $45 thousand.
• C) It creates a deadweight loss of $135 thousand.
• D) None of the above because they are all true.

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Definitions:

Inspection Time

The amount of time dedicated to examining and verifying the quality of products or materials.

Value-Added

The enhancement a company gives its product or service before offering the product to customers, adding value beyond the cost of the raw materials.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish and measure the performance against strategic goals.

Financial Measures

Quantitative indicators used to assess the financial health, performance, and stability of a business or project.