Consider the production of some industrial good that involves air pollution. The table below gives the marginal social cost (MSC), the marginal cost (MC), and the marginal social benefit (MSB) for each level of output (Q). To arrive at the efficient market equilibrium the government could impose a tax of
A) $3.
B) $4.
C) $8.
D) $9.

Question

Consider the production of some industrial good that involves air pollution. The table below gives the marginal social cost (MSC), the marginal cost (MC), and the marginal social benefit (MSB) for each level of output (Q).  To arrive at the efficient market equilibrium the government could impose a tax of
A) $3. 
B) $4. 
C) $8. 
D) $9.

Quizplus · Accepted Answer

The Answer of Consider the production of some industrial good that involves air pollution. The table below gives the marginal social cost (MSC), the marginal cost (MC), and the marginal social benefit (MSB) for each level of output (Q).  To arrive at the efficient market equilibrium the government could impose a tax of
A) $3. 
B) $4. 
C) $8. 
D) $9.

Consider the Production of Some Industrial Good That Involves Air