Multiple Choice
Refer to the information in Figure 16.5 below to answer the question(s) that follow. Figure 16.5
Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.
-Refer to Figure 16.5. The government decides to impose a tax on pollution emissions to cut total emissions in this industry in half, and based on this decision it has set the tax at $100 per ton of emissions. The total amount of pollution emissions desired by the government is ________ tons.
A) 25
B) 50
C) 75
D) 100
Correct Answer:

Verified
Correct Answer:
Verified
Q48: The Coase theorem will apply only if<br>A)
Q49: The consumption of a common resource by
Q50: When the government imposes a tax on
Q51: Which of the following contains most of
Q52: _ is (are) an example of selling
Q54: When the government pays part of my
Q55: There are 25,000 families in a small
Q56: When the government taxes a firm that
Q57: Refer to the data provided in
Q58: The drop-in-the-bucket problem is intrinsic to public