Electric power is produced by an unregulated monopoly in a certain region.The monopolistic elec?tric power company's production of electricity results in $10 per kilowatt hour of pollution damage to parties other than the buyers of electricity in the region.To achieve efficiency,
A) a $10 per kilowatt hour corrective tax is required.
B) more than $10 per kilowatt hour corrective tax is required.
C) a $10 corrective subsidy is required.
D) less than $10 per kilowatt hour corrective tax is required.
Correct Answer:
Verified
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