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Question 174

Multiple Choice

Use the following to answer questions:
Figure: Efficiency and Pollution Use the following to answer questions: Figure: Efficiency and Pollution -(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. An optimal Pigouvian tax of _____ can move this market to the socially optimal quantity of pollution. A) $5 B) $15 C) $25 D) $45
-(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. An optimal Pigouvian tax of _____ can move this market to the socially optimal quantity of pollution.


A) $5
B) $15
C) $25
D) $45

Correct Answer:

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