Multiple Choice
Figure 9.8
-Figure 9.8 depicts a market for electricity. Assume electricity production incurs external costs. If the government imposes a pollution tax in the amount illustrated, the amount of the pollution tax borne by the electricity producers is:
A) PA - PB.
B) PA - PC.
C) PB - PC.
D) 1/2) ·PA - PB) .
Correct Answer:
Verified
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