(Table: Costs of Antibiotics) Refer to the Table

question 58

Multiple Choice

(Table: Costs of Antibiotics) Refer to the table. The deadweight loss in themarket could be eliminated if the government:

• A)outlawed the production of the good.
• B)added a $10 tax per unit.
• C)equated marginal benefit with external cost.
• D)subsidized consumption by $5 per unit.

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Definitions:

Perfect Competitors

Market participants in a perfectly competitive market where no single buyer or seller has the power to influence prices.

Short Run

A period in economics during which some factors of production or inputs are fixed in quantity and cannot be changed.

Industry

A distinct group of productive or service businesses that share similar characteristics, processes, or goods.

Perfect Competitor

A theoretical firm in a perfectly competitive market where no single buyer or seller has the market power to influence prices.