Refer to the Accompanying Figure to Answer the Following Questions

question 89

Multiple Choice

Refer to the accompanying figure to answer the following questions.

-To achieve the social optimum,the government could set a tax equal to ________ per unit sold.

• A) $6
• B) $4
• C) $2
• D) $3
• E) $5

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Definitions:

Factoring Receivables

A transaction in which a company trades its outstanding invoices to another entity at a lower value to quickly secure cash.

Customer Payment

The process through which customers complete transactions to pay for goods or services received from a business.

Exchange Rate

The value of one currency for the purpose of conversion to another. It indicates how much of one currency can be exchanged for another currency.

Risk

Risk refers to the potential of losing some or all of an investment due to various factors such as economic changes, market volatility, or company performance.