The imposition of a tax on an open-access resource increases the marginal private cost of using the resource by _____
A)zero.
B)the amount of the tax.
C)the marginal cost of the resource.
D)the average private cost of using the resource.
E)the average social cost of using the resource.

Question

Quizplus · Accepted Answer

Imposing a tax on an open-access resource will increase the cost of using that resource by the amount of the tax, which increases the marginal private cost of using the resource.

The Imposition of a Tax on an Open-Access Resource Increases