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PQ 11.03 Refrigerator producers use CFC in production which has a number of external costs. Specifically, CFC destroys ozone in the atmosphere. Suppose the marginal

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PQ 11.03 Refrigerator producers use CFC in production which has a number of external costs. Specifically, CFC destroys ozone in the atmosphere. Suppose the marginal external cost is $200 per refrigerator and the government levies a corrective tax of $400 per refrigerator. With this new tax: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a not enough refrigerators will be produced. b the price will be below the marginal social cost. C the price will be below the marginal social benefit. d the price will be below the marginal cost to produce refrigerators

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