Consider the Production of Some Industrial Good That Involves Air

question 314

Multiple Choice

Consider the production of some industrial good that involves air pollution. The table below gives the marginal social cost (MSC) , the marginal cost (MC) , and the marginal social benefit (MSB) for each level of output (Q) . To arrive at the efficient market equilibrium the government could impose a tax of

• A) $3.
• B) $4.
• C) $8.
• D) $9.

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Definitions:

Increased Productivity

An enhancement in the efficiency and output of work processes or employees, resulting in greater yields or improved quality with the same or fewer resources.

Flexible Working Hours

Employment arrangements that allow workers to vary their workday start and end times.

Contingency Workers

Employees who do not have long-term or permanent employment contracts, including freelancers, consultants, and temporary contract workers.

Part-Time

Refers to work or employment that is less than the full number of hours defined as standard, typically offering limited hours of work per week.