When the production of a good creates an external cost, to achieve the efficient quantity governments can set taxes (T) such that ________
A) MSC = MC + T
B) MC = MSC + T
C) T = MC + MSC
D) MSC = MC - T
A
You might also like to view...
Which of the following games is NOT analyzed with game theory?
A) State Lottery B) Poker C) Car Chases D) Auctions
In the case of a nonexcludable public good, the market will fail to produce the good because of the free rider problem
Indicate whether the statement is true or false
Which of the following is an example of external debt for the United States?
A) A purchase of Apple stock by a person in Canada B) A loan made in yen to a company in the United States C) A loan made by Citibank to the government of Mexico D) A purchase of U.S. Treasury bills by the Bank of Japan
As output rises, the MRP of an imperfect competitor will _____ that of a perfect competitor.
A. rise faster than B. fall faster than C. rise at the same rate as D. fall at the same rate as