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.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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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.
Transcribed Image Text: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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