Solved

The Marginal External Cost Associated with Air Pollution Increases with the Annual

Question 30

Multiple Choice

The marginal external cost associated with air pollution increases with the annual output of a pollut?ing industry.At the current competitive equilibrium level of output per year, the marginal external cost is $10 per unit of output.To achieve efficiency, a corrective


A) tax of $10 per unit of output is required.
B) tax of more than $10 per unit of output is required.
C) tax of less than $10 per unit of output is required.
D) subsidy of $10 per unit of output is required.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents