Multiple Choice
If utilities pollute the air too much in private equilibrium,corrective taxation of the utilities would:
A) shift the private marginal cost curve downward.
B) shift the private marginal cost curve upward.
C) reduce pollution and shift the private marginal cost curve downward.
D) reduce pollution and shift the private marginal cost curve upward.
Correct Answer:

Verified
Correct Answer:
Verified
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