Suppose the Market for Oranges Is Perfectly Competitive and Unregulated

question 3

Multiple Choice

Suppose the market for oranges is perfectly competitive and unregulated.Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges.Suppose Q_D = 1000 - 100P and Q_S = -100 + 100P.The tax that would have to exist to achieve the socially optimal level of production would be

• A) $0
• B) $.50
• C) $1
• D) $2

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Definitions:

Species Richness

The number of different species represented in an ecological community, landscape, or region, indicating its biodiversity.

Parasitic Relationship

A non-mutual relationship between species, where one species, the parasite, benefits at the expense of the other, the host.

Pathogen

An organism, typically a microorganism, that causes disease in its host, including viruses, bacteria, fungi, and parasites.

Mutualistic Symbiont

An organism that lives in a mutualism, providing reciprocal benefits to its host without harm.