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 difference between the social marginal cost and the firm’s marginal cost. d. the total of the social marginal cost and the firm’s margin
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 difference between the social marginal cost and the firm’s marginal cost. d. the total of the social marginal cost and the firm’s margin
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 2.5P
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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
c. the difference between the social marginal cost and the firm’s marginal cost.
d. the total of the social marginal cost and the firm’s marginal cost.
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