Multiple Choice

-The figure above shows the market for digital cameras. If a tax on digital cameras of $30 per camera is imposed, and at the same time new technology lowers the marginal cost of producing a digital camera by $30 at each level of output, the marginal cost of the last camera produced is ________ and the marginal benefit that consumers receive from it is ________.
A) $300; $300
B) $270; $300
C) $290; $320
D) $290; $290
Correct Answer:
Verified
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