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Question 14 1 / 1 pts Draw a market with a negative externality. Be sure to label the social marginal cost and private marginal costs
Question 14 1 / 1 pts Draw a market with a negative externality. Be sure to label the social marginal cost and private marginal costs curves carefully. Draw a single demand "private value" curve. Label Qmarket and Qoptimum. Now impose a pigouvian tax on this market. Where is the new Qmarket? Correct! O On top of, equal to, Qoptimum O slightly to the left of Qoptimum O slightly to the right of Qoptimum O just to the right of the old Qmarket
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