Refer to the Data Provided in Table 16 -Refer to Table 16

question 122

Multiple Choice

Refer to the data provided in Table 16.2 below to answer the following questions.
Table 16.2
$$\begin{array} { c c c } \text { Tons of Glass } & \text { MC } & \text { MSC } \\\hline 1 & 20 & 40 \\2 & 30 & 50 \\3 & 40 & 60 \\4 & 50 & 70 \\5 & 60 & 80 \\\hline\end{array}$$
-Refer to Table 16.2. To force this glass?recycling firm to produce the efficient level of output, the government should impose a tax

• A) of $10 per ton.
• B) of $12.50 per ton.
• C) of $20 per ton.
• D) that depends on the level of output that the firm produces to maximize profits.

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Definitions:

Operating Capacity

The maximum output or productivity level that a company can achieve using its current resources under normal working conditions.

Fixed Overhead Costs

Expenses that do not change with the level of production, such as rent or salaries of administrative staff.

Effect On Income

The impact of specific actions, events, or decisions on a company's net income or profitability.

Book Value

Book value is the net value of a company's assets as reported on the balance sheet, calculated by subtracting liabilities from the total assets.