Author Question: A Pigouvian tax is a tax designed to ________. A) induce consumers of a good to reduce the ... (Read 26 times)

Mimi · **on:** Jun 29, 2018

A Pigouvian tax is a tax designed to ________.

A) induce consumers of a good to reduce the consumption of the good
B) induce producers generating negative externalities to reduce production
C) induce producers generating positive externalities to reduce production
D) induce producers to stop the production of a good

Question 2

Refer to the scenario above. If they are the only bidders in the auction and each of them uses his optimal strategy, who will win?

A) Tom
B) Bill
C) Jeff
D) Roger