When a quota is imposed on a market with a negative externality, the market is: Multiple Choice not efficient, because the marginal cost outweighs the marginal benefit for too many consumers. efficient, because consumption occurs at the efficient level. efficient, because the net benefits individuals receive from the amount set by the quota are equal. not efficient, because the net benefits individuals receive from the amount set by the quota are different.
When a quota is imposed on a market with a negative externality, the market is: Multiple Choice not efficient, because the marginal cost outweighs the marginal benefit for too many consumers. efficient, because consumption occurs at the efficient level. efficient, because the net benefits individuals receive from the amount set by the quota are equal. not efficient, because the net benefits individuals receive from the amount set by the quota are different.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 18SQ
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Transcribed Image Text:When a quota is imposed on a market with a negative externality, the market is:
Multiple Choice
not efficient, because the marginal cost outweighs the marginal benefit for too many consumers.
efficient, because consumption occurs at the efficient level.
efficient, because the net benefits individuals receive from the amount set by the quota are equal.
not efficient, because the net benefits individuals receive from the amount set by the quota are different.
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