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The market below depicts supply, demand and marginal social cost in the widget market. 1.00 De 0.90 0.80 0.70 0.00 0.50 0.40 0.30 020 25 50 75 100 125 150 176 200 To correct for the externality, what should be used? O a. A subsidy of $0.20 b. A tax of $0.20 OC. A subsidy of $0.30 Od. A tax of $0.30

The market below depicts supply, demand and marginal social cost in the widget market. 1.00 De 0.90 0.80 0.70 0.00 0.50 0.40 0.30 020 25 50 75 100 125 150 176 200 To correct for the externality, what should be used? O a. A subsidy of $0.20 b. A tax of $0.20 OC. A subsidy of $0.30 Od. A tax of $0.30

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The market below depicts supply, demand and marginal social cost in the widget market. 1.00 0.90 0.80 0.70 0.00 0.50 0.40 0.30 020 25 50 75 100 ten ard 125 150 176 200 To correct for the externality, what should be used? O a. A subsidy of $0.20 b. A tax of $0.20 OC. A subsidy of $0.30 Od. A tax of $0.30
Transcribed Image Text:The market below depicts supply, demand and marginal social cost in the widget market. 1.00 0.90 0.80 0.70 0.00 0.50 0.40 0.30 020 25 50 75 100 ten ard 125 150 176 200 To correct for the externality, what should be used? O a. A subsidy of $0.20 b. A tax of $0.20 OC. A subsidy of $0.30 Od. A tax of $0.30
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