-The Figure Above Shows the Market for a Good with an External

question 140

Multiple Choice

-The figure above shows the market for a good with an external benefit.If the government wants to grant a subsidy so that the efficient quantity is produced,the subsidy must equal ________ per unit.

• A) $100
• B) $150
• C) $250
• D) $300
• E) $50

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Profitability

The ability of a business or activity to generate more revenue than the expenses incurred, resulting in financial gain.

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