The Following Table Shows the Costs and Benefit of Producing

question 72

Multiple Choice

The following table shows the costs and benefit of producing a commodity. Table 13.1
In Table 13.1, what level of tax per unit would be appropriate to internalize the externality?

• A)$4
• B)$6
• C)$1
• D)$8
• E)$2

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Definitions:

Persuasive Request

A communication aimed at convincing someone to agree with a particular request or proposal.

Situation

A set of circumstances or the state of affairs at a particular time or in a particular place.

Interest and Desire

The feeling of wanting to know or learn about something, combined with a wish or inclination to obtain or achieve it.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.