The government auctions off 600 units of pollution rights. The rights sell for $50 per unit, raising $30,000 of revenue for the government. This policy is equivalent to a corrective tax of _____per unit of pollution. a) $50 b) $30 c) $20 d) 600
The government auctions off 600 units of pollution rights. The rights sell for $50 per unit, raising $30,000 of revenue for the government. This policy is equivalent to a corrective tax of _____per unit of pollution. a) $50 b) $30 c) $20 d) 600
Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section: Chapter Questions
Problem 14QP
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The government auctions off 600 units of pollution rights. The rights sell for $50 per unit, raising $30,000 of revenue for the government. This policy is equivalent to a corrective tax of _____per unit of pollution.
a) $50
b) $30
c) $20
d) 600
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