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Use Figure: Externalities and Deadweight Loss I

Question 27

Multiple Choice

Use Figure: Externalities and Deadweight Loss I. The figure shows the marginal private benefit, marginal social benefit, and marginal private cost for a good. The government should offer a _____ subsidy to arrive at the socially optimal quantity.

Figure: Externalities and Deadweight Loss I
Use Figure: Externalities and Deadweight Loss I. The figure shows the marginal private benefit, marginal social benefit, and marginal private cost for a good. The government should offer a _____ subsidy to arrive at the socially optimal quantity. ​ Figure: Externalities and Deadweight Loss I   A)  $5 B)  $10 C)  $15 D)  $20


A) $5
B) $10
C) $15
D) $20

Correct Answer:

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