Consider a competitive market with negative externalities and a firm in this market. To force this firm to consider these negative externalities, the government may impose a quantity tax equal to . After imposing this tax this firm will produce at a level for which_____. MSC , P=MDC. МС, Р-MSC. MDC, P=MSC. None of the answers are right. МАС, Р- МС.

Consider a competitive market with negative externalities and a firm in this market. To force this firm to consider these negative externalities, the government may impose a quantity tax equal to . After imposing this tax this firm will produce at a level for which_____. MSC , P=MDC. МС, Р-MSC. MDC, P=MSC. None of the answers are right. МАС, Р- МС.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 8QP

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