-In the Above Figure,market Equilibrium at Point E Yields the Quantity

question 127

Multiple Choice

-In the above figure,market equilibrium at point E yields the quantity X.The quantity is socially optimal amount.The government can achieve the optimal outcome by

• A)setting the price at .
• B)establishing a tax of - per unit of the good sold.
• C)establishing a tax of - per unit of the good sold.
• D)setting the price at .

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Definitions:

Fabric Manufacturing

The process of converting raw fibers into finished textile products through weaving, knitting, or other techniques.

Patent Rights

Legal protections granted to inventors that give them exclusive rights to use, make, and sell their invention for a certain period.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company’s sales.

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.