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Question 32

Multiple Choice

Use the following to answer questions:
Figure: Market with External Cost Use the following to answer questions: Figure: Market with External Cost   -(Figure: Market with External Cost)  The figure displays a market with external costs. The efficient level of output of ________ units would eliminate the deadweight loss area of ________. A)  Q<sub>1</sub>; ce B)  Q<sub>0</sub>; ce C)  Q<sub>0</sub>; gh D)  Q<sub>1</sub>; de
-(Figure: Market with External Cost) The figure displays a market with external costs. The efficient level of output of ________ units would eliminate the deadweight loss area of ________.


A) Q1; ce
B) Q0; ce
C) Q0; gh
D) Q1; de

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