-Refer to Figure 15-3

question 103

Multiple Choice

-Refer to Figure 15-3. At the competitive market equilibrium, for the last unit produced,

• A) the size of the external cost is P_m - P_o.
• B) the size of the external benefit is P_m - P_o.
• C) the size of the external cost is P_n - P_o.
• D) the size of the external benefit is P_n - P_o.

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Definitions:

Canada Competition Act

A Canadian federal law designed to promote fair competition in the marketplace by regulating anti-competitive practices.

Fair-Trade Coffee

Fair-trade coffee is coffee that is certified as having been produced and traded under stringent fair-trade standards, which aim to ensure ethical treatment and fair compensation for producers.

Price Premium

The additional amount a consumer is willing to pay for a product over and above the perceived value of similar products.

Low Tar

Refers to cigarettes that are designed to produce a lesser amount of tar upon combustion, often perceived as a "healthier" option.