Figure 10-2 -Refer to Figure 10-2.Assume the Production of the Product Shown

question 66

Multiple Choice

Figure 10-2

-Refer to Figure 10-2.Assume the production of the product shown by the graph imposes a cost on society of $7.00 per unit.If the free market equilibrium output is 50 units,the government should

• A)impose a tax of $2.50 per unit.
• B)increase the output of the firm by 25 units.
• C)impose a lump-sum tax of $350 per period.
• D)impose a tax of $7.00 per unit.

---

Definitions:

Legal Framework

The structure of laws, regulations, and legal institutions that guide how a society operates, protects rights, and administers justice.

Parol Evidence

The rule that bars oral testimony or prior written agreements that contradict or modify the terms of a written contract.

Integrated Document

A combined document that merges several related materials into one cohesive file, often for clarity and comprehensive understanding.

Ambiguous

Lacking clear definition or form, often leading to confusion or multiple interpretations.