Author Question: Suppose the government imposes a tax for each unit of pollution that a firm produces. The firm will (Read 68 times)

shanell · **on:** Oct 12, 2022

Question 1

A pollution-control policy that, in principle, can perfectly internalize pollution externalities is
◦ an emissions tax.
◦ fines for firms that pollute over a certain amount.
◦ emission limits.
◦ moral suasion.
◦ None of the above can internalize the externality.

Question 2

Suppose the government imposes a tax for each unit of pollution that a firm produces. The firm will
◦ ignore the tax and continue to produce the same amount of output.
◦ reduce emissions until the marginal cost of any further reduction in pollution is equal to or greater than the tax.
◦ increase output such that the additional revenue can offset this additional tax payment.
◦ reduce emissions until the marginal cost of any further reduction in pollution is equal to the price of the firm's product.
◦ stop producing altogether.

mamboz · **Reply #1 on:** Oct 12, 2022

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 50% of students answer this correctly