A difficulty with using a uniform per-unit tax to address a negative externality is that
A) the tax will reduce output.
B) the tax will increase price.
C) the social cost of pollution might vary across geographic regions.
D) the social cost of pollution should not be assessed on the consumers, but should be assessed on the firms.
Answer: C
Economics
You might also like to view...
The Celler-Kefauver Act made it illegal to
a. provide selective discounts b. set prices below marginal cost c. conspire to collude d. buy a competitor's patents, plants, or equipment e. price discriminate
Economics
If foreign exchange rates are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is
a. fixed b. government-determined c. set by the value of gold d. said to float e. not in equilibrium
Economics