In order for pollution taxes to be effective in eliminating the deadweight loss resulting from pollution, the pollution tax must be set equal to the
A) marginal private cost.
B) marginal external cost.
C) marginal social cost.
D) marginal benefit of polluting.
E) price of the good.
B
Economics
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In equilibrium under monopolistic competition: a. marginal revenue exceeds average revenue. b. marginal revenue exceeds marginal cost
c. marginal revenue is equal to marginal cost. d. marginal revenue is less than marginal cost.
Economics
To maximize total revenue
A) should produce where MR=MC. B) should produce where MR=P. C) a firm should produce where MR=0. D) should produce where P=ATC.
Economics