Multiple Choice
To eliminate the inefficiency resulting from an external cost of production, the government can impose a tax on producers that is equal to the
A) MSB.
B) MC.
C) marginal external cost.
D) MSC.
Correct Answer:

Verified
Correct Answer:
Verified
Q316: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q317: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -Based on the
Q318: The cost of producing a good or
Q319: A country has several factories that emit
Q320: The external benefit of a good<br>A) equals
Q322: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q323: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the figure
Q324: Marginal social cost is equal to<br>A) marginal
Q325: For a common resource, the marginal private
Q326: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" The figure shows