The advantage of imposing a tax on the producer that generates pollution is that
A) it will eliminate pollution.
B) the government can keep tabs on exactly what is produced in an industry.
C) a producer can pass the cost of pollution to the victims of the pollution.
D) it forces the polluting producer to internalize the external cost of the pollution.
D
Economics
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As other firms enter a monopoly's market, the monopoly's market power
A) is unaffected. B) declines. C) increases. D) increases according to the Lerner Index but decreases according to the price/marginal cost ratio.
Economics
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