When the production of a good creates an external cost, by setting the tax rate equal to the ________, firms can be made to behave in the same way as they would if they bore the cost of the externality directly

A) marginal external cost
B) marginal social benefit
C) marginal private benefit
D) marginal social cost

A

Economics

You might also like to view...

In the figure above, using the midpoint method, what is the price elasticity of demand between points A and B?

A) 0.05 B) 0.13 C) 0.43 D) 1.00 E) 2.33

Economics

What are the accurate coordinates for E2?


a. PL1 at RGDP1
b. PL1 at RGDPNR
c. PL2 at RGDP1
d. PL2 at RGDPNR

Economics