The government auctions off 500 units of pollut ionrights. They sell for $50 per unrt, raising total revenueof $25,000. This policy is equivalent to a correctivet ax of __ per unit of pollution.a. $10b. $50c . $450d. $500

The government auctions off 500 units of pollut ionrights. They sell for $50 per unrt, raising total revenueof $25,000. This policy is equivalent to a correctivet ax of __ per unit of pollution.a. $10b. $50c . $450d. $500

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 5QCMC

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Question

The government auctions off 500 units of pollut ion
rights. They sell for $50 per unrt, raising total revenue
of $25,000. This policy is equivalent to a corrective
t ax of __ per unit of pollution.
a. $10
b. $50
c . $450
d. $500

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