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The Following Diagram Shows a Price- Taking Firm That Creates

Question 71

Multiple Choice

The following diagram shows a price- taking firm that creates pollution when it produces. As a result, the firm's marginal social cost (MSC) is above its marginal private cost (MC) .
The following diagram shows a price- taking firm that creates pollution when it produces. As a result, the firm's marginal social cost (MSC) is above its marginal private cost (MC) . What is the optimum tax? A) cd B) ca C) ab D) da What is the optimum tax?


A) cd
B) ca
C) ab
D) da

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