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If a Pollution Tax Is Placed on a Firm Emitting

Question 85

Multiple Choice

If a pollution tax is placed on a firm emitting pollution,the firm will pay the tax,rather than reduce its emissions,as long as the tax is


A) Above its MPC of pollution control
B) Below its MPC of pollution control
C) Above the MSC of pollution control
D) Below the MSC of pollution control
E) Reasonable

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