Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. To force this firm to produce the efficient level of output, the government should impose a tax of
A. $5.00 per bag of fertilizer.
B. $10.00 per bag of fertilizer.
C. $15.00 per bag of fertilizer.
D. an amount that is indeterminate from this information.
Answer: A
You might also like to view...
Refer to Figure 29-1. The depreciation of the dollar is represented as a movement from
A) B to C. B) B to A. C) D to C. D) A to C. E) A to B.
In a barter economy the number of prices in an economy with N goods is
A) [N(N - 1 )]/2. B) N(N/2 ). C) 2N. D) N(N/2 ) - 1.
The consumer optimum is the set of goods and services, subject to the limited income of the consumer, that
A. is characterized by zero marginal utility on each good and service. B. maximizes the level of satisfaction for each consumer. C. is characterized by increasing marginal utility. D. the consumer can afford to buy.
Refer to the information provided in Scenario 22.5 below to answer the question(s) that follow.SCENARIO 22.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.?Average
Monthly Telephone Use per Resident (minutes)Island20162017Achoo4,5005,150Zoink4,8005,225Refer to Scenario 22.5. The total cost of telephone service for residents of Zoink in 2016 is ________ Bugabucks. A. 4,800 B. 24,000 C. 96,000 D. 120,000