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Author Question: An emissions tax (imposed on each unit of pollution produced) that is set too high to achieve ... (Read 64 times)

knemetz3

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on: Oct 12, 2022
An emissions tax (imposed on each unit of pollution produced) that is set too high to achieve allocative efficiency will cause
◦ too many resources to be devoted to pollution abatement and too little of the product to be produced.
◦ no change in the polluting firm's behaviour.
◦ new firms to enter the industry.
◦ too few resources to be devoted to pollution abatement and too much of the product to be produced.
◦ too few resources to be devoted to pollution abatement and too little of the product to be produced.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by knemetz3 on Oct 12, 2022

KobyRhoads

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Reply #1 on: Oct 12, 2022
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knemetz3

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Reply 2 on: Oct 12, 2022
Great answer, keep it coming :)

tuate

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Reply 3 on: Yesterday
Excellent

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