MULTIPLE CHOICE. Enter your answer into Canvas as the lower-case letter corresponding to your answer, such as a or c (no quotes).

Look at Diagram 3. There is a negative externality in this market. Use the diagram to answer questions 30 34. Look at Diagram 3. There is a negative externality in this market. Use the diagram to answer questions \( 30-34 \). Diagram 3

30. [3] The allocatively efficient level of production is

a) Qx

b) Qy

31. [3] The total amount of external cost from the negative externality (without government intervention) is

a) aefb

b) cef

c) cdf

d) cefd

32. [2] In order to get to the allocatively efficient level of output, the government should

a) offer a Pigouvian subsidy

b) impose a Pigouvian tax

33. [3] The sum total of the tax collected, or subsidy offered is (depending on your answer to question 29):

a) aefb

b) cefd

c) acdb (tax collected)

d) cef

34 [4]. The net gain to society from government intervention (with the Pigouvian subsidy or tax) is (on the graph, not in size [area])

a) cef

b) cfd

c) cefd

d) aefb

Look at Diagram 3. There is a negative externality in this market. Use the diagram to answer questions 3034. Diagram 3