A firm that generates pollution is illustrated in Figure 9.7. If the government would like to induce this firm to abate, or reduce, its pollution by A1 tons, it will impose a pollution tax equal to:
A. P1.
B. P1 minus P3.
C. P2.
D. P2 minus P3.
Answer: A
You might also like to view...
The question of whether the public or the private sector is appropriate to provide public goods must be decided on a case by case basis
a. True b. False
Competitive forces will reduce the effects of employers’ discrimination over time.
Answer the following statement true (T) or false (F)
The above table shows some of the balance of payments accounts for Urland. What is Urland's balance on the current account?
A) $80 billion B) $62 billion C) $84 billion D) $47 billion
Demand for a good is inelastic if:
A. total revenue decreases when price increases. B. the quantity effect outweighs the price effect of a price increase. C. the absolute value of price elasticity is greater than 1. D. total revenue increases when price increases.