The Following Questions Refer to the Graph Below

question 88

Multiple Choice

The Following Questions Refer to the graph below.
-Assume that the current market demand and supply curves for Z are D₂ and S₂.If there are positive social spillovers associated with the production of Z:

• A)Government should levy a per unit tax on Z to shift the supply curve toward S₁
• B)An output greater than 0G would improve resource allocation
• C)Government should levy a per unit tax on Z to shift the demand curve toward D₁
• D)An output smaller than 0G would improve resource allocation
• E)Both (a)and (d)

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Definitions:

Nonverbal Behavior

Communication expressed through body language, facial expressions, gestures, and other physical means rather than words.

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Organization's Competitors

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