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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

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 3QR
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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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