Market imperfections are often brought about by externalities. If there are external benefits or positive externalities associated with consumption and production of a particular product in Canada, it can be said that the: Multiple Choice government should consider placing a special tax on producers. supply curve for the product lies too far to the right to provide an efficient allocation of resources. demand curve understates the total benefit from the product and resources are under-allocated to its production. government should consider prohibiting the production of the commodity.
Market imperfections are often brought about by externalities. If there are external benefits or positive externalities associated with consumption and production of a particular product in Canada, it can be said that the: Multiple Choice government should consider placing a special tax on producers. supply curve for the product lies too far to the right to provide an efficient allocation of resources. demand curve understates the total benefit from the product and resources are under-allocated to its production. government should consider prohibiting the production of the commodity.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 1QFR
Related questions
Question
23
Transcribed Image Text:Market imperfections are often brought about by externalities. If there are external benefits or positive externalities associated
with consumption and production of a particular product in Canada, it can be said that the:
Multiple Choice
government should consider placing a special tax on producers.
supply curve for the product lies too far to the right to provide an efficient allocation of resources.
demand curve understates the total benefit from the product and resources are under-allocated to its
production.
government should consider prohibiting the production of the commodity.
< Prev
23 of 32
‒‒‒
Next >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
