Table 10-1 the Following Table Shows the Private Value, Private Cost, and Cost

question 276

Multiple Choice

Table 10-1
The following table shows the private value, private cost, and external cost for various quantities of output in a market.
-Refer to Table 10-1. How large would a corrective tax need to be to move this market from the equilibrium outcome to the socially-optimal outcome?

• A)$2
• B)$3
• C)$9
• D)$10

---

Definitions:

Machinist Rule

A machinist rule is a precision measuring instrument used by machinists to measure distances and dimensions accurately.

Dial Caliper

A mechanical measuring caliper with a rotary display scale.

Component Measuring

The process of precisely determining the dimensions, capacity, or amount of various components or parts in manufacturing or engineering.

Posi-Drive Screw

A type of screw designed with a unique drive system that reduces the risk of cam-out and increases the efficiency of torque transmission.