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)n MC prime The industry for Good X is competitive. Good X factories pollute the neighborhoods where they are located. There is no possibility of
)n MC prime The industry for Good X is competitive. Good X factories pollute the neighborhoods where they are located. There is no possibility of negotiation to reduce pollution. Assume it would cost the neighbors $50 to move elsewhere. a. If the firm is subject to a Pigou tax and the cost to move is $50, will neighbors move?Why or why not? Be sure to refer to the graph above in your answer and compare relevant calculations. b. If the firm is subject to a Pigou tax and the cost to move is $20, will neighbors move?Why or why not? Be sure to refer to the graph above in your answer and compare relevant calculations
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