When Farmers Raise Hogs,there Are a Number of External Costs

question 59

Multiple Choice

When farmers raise hogs,there are a number of external costs.In particular,hogs generate methane gas.If the marginal external cost is $100 per hog and the government imposes a tax of $200 per hog,then at the equilibrium price and quantity of hogs:

• A)too few hogs will be raised.
• B)the price will be less than the marginal social cost.
• C)the price will be less than the marginal social benefit.
• D)the price will be less than the marginal cost to hog farmers.

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Definitions:

Vaccine

A biological preparation that provides active acquired immunity to a particular infectious disease.

Mutates

Refers to the ability of an organism or genetic material to undergo changes or mutations in its DNA sequence.

Oral Candidiasis

A fungal infection in the mouth caused by the overgrowth of Candida yeast, often resulting in white lesions on the tongue or inner cheeks.

Endogenous

Originating from within an organism, system, or process, such as hormones or neurotransmitters that are produced inside the body.