The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the efficient amount of paper will be produced by setting a Pigovian tax of
A) $5 per ton.
B) $10 per ton.
C) $20 per ton.
D) $40 per ton.
C
You might also like to view...
Using the quantity theory of money, in the long run a 3 percent increase in the quantity of money leads to a 3 percent
A) increase in real GDP. B) decrease in the price level. C) increase in the price level. D) decrease in the real interest rate. E) increase in the real interest rate.
The wage premium for the average college graduate (vs. the average high school graduate) has gone down significantly in recent years
a. True b. False
If consumption increases in general the aggregate demand curve will:
A. remain unchanged but the economy will move down along the curve to a lower quantity. B. shift straight down. C. remain unchanged but the economy will move down along the curve to a higher quantity. D. shift to the right.
Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product
A) increases. B) does not change. C) decreases. D) could increase, stay the same, or decrease.