Refer to the data provided in Table 16.2 below to answer the following questions.
Table 16.2
$$\begin{array} { c c c }
\text { Tons of Glass } & \text { MC } & \text { MSC } \
\hline 1 & 20 & 40 \
2 & 30 & 50 \
3 & 40 & 60 \
4 & 50 & 70 \
5 & 60 & 80 \
\hline
\end{array}$$
-Refer to Table 16.2. To force this glass?recycling firm to produce the efficient level of output, the government should impose a tax

Question

Refer to the data provided in Table 16.2 below to answer the following questions.
Table 16.2
 $$\begin{array} { c c c } 
\text { Tons of Glass } & \text { MC } & \text { MSC } \
\hline 1 & 20 & 40 \
2 & 30 & 50 \
3 & 40 & 60 \
4 & 50 & 70 \
5 & 60 & 80 \
\hline
\end{array}$$
-Refer to Table 16.2. To force this glass?recycling firm to produce the efficient level of output, the government should impose a tax

Quizplus · Accepted Answer

To force the glass-recycling firm to produce the efficient level of output, the government should impose a tax that equals the difference between the marginal social cost and marginal private cost at the efficient output level. From Table 16.2, the efficient output level is 30 tons, and the marginal social cost  equals $80 per ton at this output level while the marginal private cost equals $60 per ton. Therefore, the tax that will force the firm to produce the efficient level is $20 per ton ($80 - $60 = $20). Therefore, option C is the correct answer.

Refer to the Data Provided in Table 16 -Refer to Table 16