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When a Tax Is Imposed on a Good or a Service,the

Question 206

Multiple Choice

When a tax is imposed on a good or a service,the marginal benefit of the last unit bought ________ the marginal cost of the last unit.


A) is equal to
B) is greater than
C) is less than
D) None of the above answers is correct because there is no consistent relationship between the marginal benefit of the last unit and its marginal cost.
E) is not able to be compared to

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