The External Marginal Cost of Producing Coal Is MC_external =

question 98

Multiple Choice

The external marginal cost of producing coal is MC_external = 6Q while the internal marginal cost is MC_internal = 4Q.The inverse demand for coal is given by P = 120 − 2Q.If the government taxed output at $2 per unit,what would a competitive industry produce?

• A) 10
• B) 20
• C) 15
• D) 8

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Definitions:

0 And 1

The binary numbers used in digital computing and binary code, representing the off and on states, respectively.

0 And 10

In the context of scales, '0 and 10' often refer to the endpoints of a Likert scale used in questionnaires, where '0' might represent 'strongly disagree' and '10' 'strongly agree.'

Established Measures

Validated and widely accepted tools or instruments used to assess or measure specific variables in research.

Validity

The degree to which a research study or testing instrument accurately measures what it intends to measure.