Refer to the information in Figure 16.5 below to answer the question(s) that follow. Figure 16.5
Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.
-Refer to Figure 16.5. The government decides to impose a tax on pollution emissions to cut total emissions in this industry in half, and based on this decision it has set the tax at $100 per ton of emissions. Following the implementation of this tax, the total amount of pollution emitted in this industry will be ________ tons.
A) 25
B) 50
C) 75
D) 100
Correct Answer:
Verified
Q173: Refer to the information in Figure 16.5
Q174: An efficient outcome can always be reached
Q175: If there are no externalities, producing where
Q176: Relating to the Economics in Practice on
Q177: Refer to the information in Figure 16.5
Q179: Refer to the information in Figure 16.5
Q180: Refer to the information in Figure 16.5
Q181: Subsidies can be used to internalize positive
Q182: In theory, liability rules for pollution are
Q183: Marginal social cost is the difference between
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