-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:

Selling Price

The price at which a product or service is sold to customers.

Retained Earnings

The portion of a company's profits that is not distributed as dividends to shareholders but is instead reinvested in the business or kept as a reserve.

Cash Available

The amount of cash that a company or an individual has on hand or can easily access.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.