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28 Oct 2020
Using the table below, answer the question.
Qunatity
Marginal private cost ($)
Marginal private benefit ($)
Marginal social benefit ($)
500
10
14
16
550
11
13
15
600
12
12
14
650
13
11
13
700
14
10
12
7. What can the government do so that an efficient amount is produced?
a. Subsidize suppliers $8 per unit.
b. Subsidize suppliers $2 per unit.
c. Tax suppliers $2 per unit.
d. Tax suppliers $8 per unit.
Using the table below, answer the question.
Qunatity | Marginal private cost ($) | Marginal private benefit ($) | Marginal social benefit ($) |
500 | 10 | 14 | 16 |
550 | 11 | 13 | 15 |
600 | 12 | 12 | 14 |
650 | 13 | 11 | 13 |
700 | 14 | 10 | 12 |
7. What can the government do so that an efficient amount is produced?
a. Subsidize suppliers $8 per unit.
b. Subsidize suppliers $2 per unit.
c. Tax suppliers $2 per unit.
d. Tax suppliers $8 per unit.
Raushan RajLv8
28 Oct 2020