This curve is also the marginal social cost curve MSC because the pollution tax has been set

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This curve is also the marginal social cost curve MSC because the pollution tax has been set equal to the marginal external cost at the quantity produced.

D = MB, S = MC + tax.

Figure 10.4 A Pollution Tax

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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