In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then when the market is in equilibrium,the deadweight loss is ________ thousand per month.
A)$250
B)$125
C)$150
D)$50
E)zero

Question

Quizplus · Accepted Answer

When a pollution tax equal to the marginal external cost is imposed, it internalizes the externality, leading to an efficient market outcome with no deadweight loss.

In the Figure Above,if a Pollution Tax Is Imposed That