Refer to Figure 16.1. The ________ imposed as a result of producing the efficient level of fertilizer is $250.

A) marginal social cost
B) total damage
C) marginal private cost
D) tax

Question

Refer to Figure 16.1. The ________ imposed as a result of producing the efficient level of fertilizer is $250.A)  marginal social costB)  total damageC)  marginal private costD)  tax

Coley Krieg · Accepted Answer

Final Answer : B, Explanation :  The correct answer is B) total damage because the term refers to the overall harm or cost imposed on society, which is not accounted for by the private market. In the context of producing fertilizer, the efficient level involves considering both the private costs and the external costs (damages) to society, leading to the total damage being a relevant measure.

Refer to Figure 16.1. The ________ imposed as a result of producing the efficient level of fertilizer is $250.

A) marginal social cost
B) total damage
C) marginal private cost
D) tax

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Learning Objectives

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