The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the marginal benefit of the last gallon of milk consumed is
A) $3.50 a gallon.
B) $4.00 a gallon.
C) $4.50 a gallon.
D) $5.00 a gallon.
A
Economics
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Economic growth with an increased willingness to engage in international trade will always improve the economic well-being of a large country.
Answer the following statement true (T) or false (F)
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An imperfectly competitive firm faces a demand curve that is ________, while a perfectly competitive firm faces a demand curve that is ________.
A. perfectly inelastic; downward sloping. B. perfectly inelastic; perfectly elastic. C. horizontal; downward sloping. D. downward sloping; perfectly elastic.
Economics