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Figure 9.8 -Figure 9.8 Depicts a Market for Electricity. Assume Electricity Production

Question 306

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  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) . 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:

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