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sinerus sinerus
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6 years ago
If a pollution tax imposed on a firm is smaller than external cost,
A) the pollution tax transfers the full cost borne by people outside the firm back to the firm itself.
B) the firm is producing too much from a society's point of view.
C) the social production cost increases by the amount of the pollution tax.
D) the externality is completely internalized.
Textbook 
Survey of Economics: Principles, Applications and Tools

Survey of Economics: Principles, Applications and Tools


Edition: 6th
Authors:
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Quinn1981Quinn1981
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6 years ago
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