A tax equal to the external cost on firms that emit pollutants would:
a. provide firms with the incentive to increase the level of activity creating the pollution
b. provide firms with the incentive to decrease the level of activity creating the pollution.
c. provide firms with little incentive to search for less environmentally damaging production methods.
d. not reduce pollution levels at all.
b
Economics
You might also like to view...
Long-run aggregate supply and a country's production possibility curve (PPC)
A) are inversely related. B) are closely related. C) have no relationshi
Economics
If the market supply curve and market demand curve for a good intersect at 600,000 units and there are 10,000 identical firms in the market, then each firm is producing
A) 600,000 units. B) 60,000,000,000 units. C) 60,000 units. D) 60 units. E) 10,000 units.
Economics