-Refer to the Figure Above

question 4

Multiple Choice

-Refer to the figure above. Assume the production of the product imposes a cost on society of R70.00 per unit. If the free market equilibrium output is 50 units, the government should

• A) impose a tax of R25.00 per unit.
• B) reduce the output of the firm by approximately 39 units.
• C) impose a lump-sum tax of R3 500 per period.
• D) impose a tax of R70.00 per unit.

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Definitions:

Exchange Rates

The value of one currency for the purpose of conversion to another.

Simulation Methods

Techniques used to imitate the operation of real-world processes or systems over time to study their behavior and performance.

Evaluating Decisions

The process of analyzing and reviewing choices to determine their effectiveness and impacts before or after they are made.

Uncertainty Forms

Refers to the different ways uncertainty manifests in a business environment, such as demand, supply, price, and lead time uncertainties.