Figure: Negative Externalities and Raising Pigs for Pork
(Figure: Negative Externalities and Raising Pigs for Pork) Refer to the figure Negative Externalities and Raising Pigs for Pork.If the socially optimal production of pigs is 250, the government could achieve this socially optimal production by imposing a Pigouvian tax of:
A) $400.
B) $300.
C) $250.
D) $200.
Correct Answer:
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