-The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. Suppose that the government decides to introduce a pollution tax. What is the tax per vehicle mile that will achieve the efficient outcome?
A) $2
B) $4
C) $6
D) $8

Question

-The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. Suppose that the government decides to introduce a pollution tax. What is the tax per vehicle mile that will achieve the efficient outcome?
A) $2 
B) $4 
C) $6 
D) $8

Quizplus · Accepted Answer

The efficient outcome is achieved when the tax equals the external cost per vehicle mile, which is $6 in this scenario.

-The Figure Above Shows the Market for Transportation Services, Which