If an emissions tax is imposed but it is less than the optimal Pigouvian tax, then:
a. the marginal social benefit of pollution is greater than the marginal social cost of pollution.
b. the marginal social cost of pollution is greater than the marginal social benefit of pollution.
c. total surplus will be maximized.
d. the amount of pollution will be less than the socially optimal amount.
Ans: b. the marginal social cost of pollution is greater than the marginal social benefit of pollution.
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