There are two coal-burning electrical utilities—one in tiny, rural Wanunu, Montana, and another in metropolitan Detroit, Michigan—and each produces the same amount of pollution per unit of output. If a permit tax is going to be used to force these
firms to internalize pollution costs, the tax levied should be
A) the same in each city.
B) higher in Wanunu than in Detroit.
C) higher in Detroit than in Wanunu.
D) less than zero in each city.
Answer: C
Economics
You might also like to view...
What factors can push the real wage rate above its equilibrium level? Briefly explain each factor
What will be an ideal response?
Economics
________ theory relates the quantity of money and monetary policy to changes in aggregate economic activity and inflation
A) Monetary B) Fiscal C) Financial D) Systemic
Economics