Suppose that the nation wide average cost of air pollution generated by a car is $1,000. Would a tax of $1,000 on every car induce people to take external costs into consideration and bring about the optimal price and output for autos? Explain.
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Q139: To efficiently improve environmental quality, it is
Q140: Q141: Why don't people take into consideration the Q142: The marginal cost of pollution abatement is Q143: What are the private costs of driving Q145: The marginal benefit from pollution abatement Q146: According to economic analysis, the optimal level Q147: "Private costs are borne by individuals while Q148: In general, we would expect the marginal Q149: As society is near total pollution abatement
A) increases
A)
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