Multiple Choice
(Figure: The Optimal Quantity of Pollution) Use Figure: The Optimal Quantity of Pollution.The figure shows the marginal social cost (MSC) and marginal social benefit (MSB) for firms that pollute the air with sulfur dioxide.Using the figure,the optimal Pigouvian tax per unit of pollution is: Figure: The Optimal Quantity of Pollution
A) $500.
B) $250.
C) $167.
D) $83.
Correct Answer:

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Correct Answer:
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