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If the Government Wants to Ensure That Producers Fully Internalize

Question 128

Multiple Choice

If the government wants to ensure that producers fully internalize the marginal external cost associated with the pollution they emit,then it is necessary to


A) accurately measure that external cost.
B) first ensure that firms are operating at their profit-maximizing level of output.
C) determine the long-run average cost structure for the firms.
D) determine the short-run average cost structure for the firms.
E) eliminate all the pollution the firm emits.

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