Multiple Choice
Suppose that an industry emits a chemical that pollutes ground water. Without considering the effects of the pollution, the industry has a marginal private cost curve of . The market demand curve is , while the marginal social cost curve is . What level of emissions fee would achieve the socially optimal level of output?
A) .
B) .
C) .
D) .
Correct Answer:

Verified
Correct Answer:
Verified
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