The marginal external cost associated with paper production is constant at $10 per ton per year.The competitive market equilibrium for paper production is currently 10 million tons per year.A corrective tax on paper production will:
A) collect $100 million annually.
B) collect more than $100 million annually.
C) collect less than $100 million annually.
D) reduce annual damages to those other than buyers and sellers of paper to zero.
Correct Answer:
Verified
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