Multiple Choice
Use the following to answer question:
Figure: MSB and MSC of Pollution
-(Figure: MSB and MSC of Pollution) Use Figure: MSB and MSC of Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.Suppose pollution is unregulated.What level of emissions tax would move the level of pollution to the socially optimal level?
A) $100 per ton
B) $800 per ton
C) $500 per ton
D) $300 per ton
Correct Answer:

Verified
Correct Answer:
Verified
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