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Question 34 1 pt Marginal benefit of individual polluter 51.000 900 Firm A 800- 700 600 Firm B 500 400 300 Firm C 200 100

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Question 34 1 pt Marginal benefit of individual polluter 51.000 900 Firm A 800- 700 600 Firm B 500 400 300 Firm C 200 100 100 200 300 400 500 600 700 800 900 1.080 Quantity of mercury (tons) The figure above shows three different polluting firms. Let's assume the government imposes a $600 tax on each ton of emission. Based on that, how much pollution will Firm B have? OO 200 O 400 O 1,000 Question 35 1 pts What is the optimal Pigouvian tax equal to? D Question 31 Which of the following is an advantage of tradable emission permits? O Pollution costs are easier to measure than emissions taxes. Nondegradable pollutants can be more easily controlled than degradable pollutants. The value that future generations place on pollution damages can be determined. They provide incentives for firms to develop technologies that are less polluting. D Question 32 1 Positive externalities are similar to negative externalities in their ease of measuring marginal benefits. likely to be solved with the use of a Pigouvian tax. difficult to measure, because marginal social benefits are hard to observe. result from greater than optimal production of a good

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