Author Question: Let MC be the marginal private cost per megawatt hour (Mwh) of producing electricity using coal. Let ... (Read 45 times)

Collmarie · **on:** Jun 29, 2018

Let MC be the marginal private cost per megawatt hour (Mwh) of producing electricity using coal. Let MSC be the marginal social cost per Mwh and T be the tax per Mwh. To achieve efficiency, the tax should be set so that

A) MC = MSC + T.
B) MSC = MC + T.
C) MC + MSC = T
D) MC = T.

Question 2

The main purpose of antitrust law is to

A) prohibit monopoly practices such as restricting output.
B) regulate advertising.
C) encourage the formation of cartels.
D) regulate the stock and bond markets.