Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If an oil refinery is causing negative externalities, the government could require them to pay the external costs associated with operating in the market. This

If an oil refinery is causing negative externalities, the government could require them to pay the external costs associated with operating in the market. This can be done by: imposing a tax on the refinery as a means to deincentive production. imposing a subsidy on the refinery as a means to deincentive production. D requiring the refinery to change production techniques to reduce waste by products and emissions. requiring the refinery to pay for any environmental damage caused through production. requiring the refinery to change consumers a higher price for the products. O requiring the refinery to install pollution abatement equipment to reduce waste by products and emissions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometric Analysis

Authors: William H. Greene

5th Edition

130661899, 978-0130661890

More Books

Students also viewed these Economics questions

Question

LO26.4 Analyze the economic effects of tariffs and quotas.

Answered: 1 week ago