Refer to the data. The marginal cost curve would intersect the average variable cost curve at about:

If the production of a particular good involves significant external benefits, to force the externality to be internalized the government might:

a. impose a tax on production of the good in order to increase production. b. impose a tax on production of the good in order to decrease production. c. offer a subsidy for production of the good in order to increase production. d. offer a subsidy for production of the good in order to decrease production.

If a firm increases all of its inputs by 10 percent and its output increases by 15 percent, then:

A. it is encountering diseconomies of scale. B. it is encountering economies of scale. C. the law of diminishing returns is taking hold. D. the firm's long-run ATC curve will be rising.