ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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26+ Price 24+ 22+ 20+ 18+ Supply 16 14+ 12 10 8 2 Demand Social Value 2 4 6 8 10 12 14 16 18 20 22 Quantity How large would the subsidy need to be to internalize the externality? O Less than $2 ○ $2 O More than $2 ○ The size of the subsidy cannot be determined from the figure.
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Transcribed Image Text:26+ Price 24+ 22+ 20+ 18+ Supply 16 14+ 12 10 8 2 Demand Social Value 2 4 6 8 10 12 14 16 18 20 22 Quantity How large would the subsidy need to be to internalize the externality? O Less than $2 ○ $2 O More than $2 ○ The size of the subsidy cannot be determined from the figure.
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