-The Above Figure Shows the Marginal Private Cost Curve,marginal Social

question 162

Multiple Choice

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.Suppose the government assigns individual transferable quotas (ITQ) set to achieve the efficient outcome.The market price of an ITQ is ________ per pound.

• A) $4.20
• B) $2.00
• C) $6.00
• D) $4.00
• E) $0.00

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Definitions:

Metaphor

A descriptive type of analogy, frequently found in literature.

Necessarily Follows

A logical condition where the conclusion is an inevitable result of the premises; if the premises are true, then the conclusion cannot be false.

Inductive

A method of reasoning in which the premises are viewed as supplying strong evidence for the truth of the conclusion.

Harmful Outcomes

Negative results or consequences that arise from a particular action or set of circumstances.