Multiple Choice
When the government taxes a firm that generates an external cost,the profit-maximizing firm will produce
A) more units of output than before the tax was imposed.
B) the same number of units of output as before the tax was imposed.
C) fewer units of output than before the tax was imposed.
D) either more or fewer units of output than before the tax was imposed.
Correct Answer:
Verified
Correct Answer:
Verified
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