In the Figure Given Below,D₁ and S₁ Are the Private

question 36

Multiple Choice

In the figure given below,D₁ and S₁ are the private demand and supply curves,of a commodity produced by a competitive firm.S₂ reflects the social marginal cost of production,while S₀ represents the external marginal cost.
-Refer to Figure 20-1.Which of the following policies can be adopted by the government to increase production from the equilibrium level to the efficient level?

• A)Provide a subsidy of $30 per unit
• B)Impose a tax of $100 per unit
• C)Provide a subsidy of $100 per unit
• D)Impose a tax of $20 per unit

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Definitions:

Circulatory System

The body system responsible for the flow of blood, nutrients, oxygen, carbon dioxide, and other substances to and from cells.

Mammalian

Relating to mammals, a class of warm-blooded vertebrate animals characterized by the presence of mammary glands which females use to feed their young.

Three-chambered Heart

A type of heart structure found in amphibians and reptiles, consisting of two atria and one ventricle.

Circulatory System

The body's network of blood, blood vessels, and heart responsible for pumping blood to all living cells, delivering oxygen and nutrients while removing waste products.