A tax equal to the external cost on firms that emit pollutants would a. provide firms with

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A tax equal to the external cost on firms that emit pollutants would

a. provide firms with the incentive to increase the level of activity creating the pollution.

b. provide firms with the incentive to decrease the level of activity creating the pollution.

c. provide firms with little incentive to search for less environmentally damaging production methods.

d. not reduce pollution levels at all.

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Exploring Microeconomics

ISBN: 9781544339443

8th Edition

Authors: Robert L. Sexton

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Question Posted: May 19, 2024 03:01 AM

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A tax equal to the external cost on firms that emit pollutants would a. provide firms with

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Exploring Microeconomics

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