Table 10-1 the Following Table Shows the Private Value, Private Cost, and Cost

question 276

Multiple Choice

Table 10-1
The following table shows the private value, private cost, and external cost for various quantities of output in a market.
-Refer to Table 10-1. How large would a corrective tax need to be to move this market from the equilibrium outcome to the socially-optimal outcome?

• A)$2
• B)$3
• C)$9
• D)$10

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Definitions:

Labour Usage Ratios

Measures that compare the amount of labor used to the outputs achieved, helping businesses assess efficiency.

Financially Funded Plans

Employer-sponsored programs designed to provide employees with financial benefits, such as pension plans or health insurance, which are supported by the company's funds.

Organizational Profitability

The ability of an organization to generate more revenue than its expenses, leading to financial gain.

Pre-Tax Profits

The amount of earnings of a company before the deduction of taxes, serving as a key indicator of financial health and operational efficiency.