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Above is a market for lumber. What is the amount of the tax that eliminates the inefficiency in this market?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

MSC
$45
30
MC
25-
10
MB
Q (Units of Lumber)
140
170
Above is a market for lumber. What is the amount of the tax that eliminates the inefficiency in this
market?
O $15
O $5
O $20
O $10

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