The optimal level of output can be achieved by levying a tax on a company producing a negative externality. This should be set a level that is equal to (a) the marginal cost of a curve (b) the social marginal cost curve (c)

The optimal level of output can be achieved by levying a tax on a company producing a negative externality. This should be set a level that is equal to (a) the marginal cost of a curve (b) the social marginal cost curve (c)

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 7SQ

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The optimal level of output can be achieved
by levying a tax on a company producing a
negative externality. This should be set a
level that is equal to (a) the marginal cost of
a curve (b) the social marginal cost curve (c)
the different between the social marginal
cost and the firm's marginal cost (d)the total
of the social marginal cost and firm's
marginal cost.

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