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Author Question: Taxes can yield the efficient level of pollution if the tax is set equal to the A) marginal ... (Read 65 times)

RYAN BANYAN

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on: Jun 29, 2018
Taxes can yield the efficient level of pollution if the tax is set equal to the
 
  A) marginal benefit of pollution.
  B) marginal external cost of the pollution.
  C) marginal social cost of the pollution.
  D) equilibrium price of the pollution.

Question 2

Consider a market in which there is an external cost. A tax can be used to arrive at the efficient market equilibrium because the tax will
 
  A) decrease supply of the good.
  B) increase supply of the good.
  C) decrease demand for the good.
  D) increase demand for the good.


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Ddddd

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


RYAN BANYAN

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

Liddy

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Reply 3 on: Yesterday
Gracias!

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