Suppose that the government could accurately measure the marginal cost of an externality such as water pollution. In order to reduce production from a plant that emits water pollution, the government places an optimal emissions fee on the plant. The final amount of production equates demand with the marginal social cost to society. The deadweight loss associated with this fee is
A) equal to the amount of the tax.
B) equal to the quantity reduction as a result of the tax.
C) measured as .
D) zero.
Correct Answer:
Verified
Q2: Which of the following is not a
Q6: A public good is a good:
A)that is
Q10: An example of a positive externality is:
A)a
Q20: Which of the following is a key
Q23: An environmental economic consulting firm is
Q24: An environmental economic consulting firm is
Q26: An environmental economic consulting firm is
Q27: An environmental economic consulting firm is
Q28: The efficient amount of pollution in society:
A)is
Q33: If the detriment to society from a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents