Why do you suppose that taxes are often used in place of effluent ...

[casperchen82]

Why do you suppose that taxes are often used in place of effluent charges in order to combat pollution?
 
  What will be an ideal response?

Question 2

Suppose that you are the president of a small printing company and you are considering the purchase of new machinery. What factors must you consider in making this decision?
 
  What will be an ideal response?

[eliasc0401]

Answer to Question 1

Since pollution is often difficult to measure imposing taxes on the amount of production is a way of making it easier since the assumption is that the amount of pollution is typically proportional to production levels.

Answer to Question 2

You must first consider the expected flow of future productive services that the machinery will yield. The expected costs must be considered as well. These costs should include a look at the possible alternative uses of the funds required to purchase the machinery.