In the Figure Above,if a Pollution Tax Is Imposed That

question 131

Multiple Choice

In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then when the market is in equilibrium,the deadweight loss is ________ thousand per month.

• A)$250
• B)$125
• C)$150
• D)$50
• E)zero

---

Definitions:

Mark-up

Increment on the buying price of products targeted to offset operational costs and profits.

Selling Price

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

Mercola

A brand and website known for its health-based products and controversial wellness information.

Break-even

The point in business where revenues equal expenses, resulting in no net loss or gain.