Ask Question
30 September, 17:36

Suppose a tax equal to the value of the marginal external cost at the optimal output is imposed on a pollution generating good. All of the following will result from the tax except

A) an increase in demand for the good.

B) an increase in the equilibrium market price.

C) a decrease in the equilibrium quantity produced and consumed

D) a decrease in market supply of the good.

+4
Answers (1)
  1. 30 September, 20:00
    0
    C) a decrease in the equilibrium quantity produced and consumed

    Explanation:

    Marginal external cost is the change in the cost to parties other than the producer or buyer of a good or service due to the production of an extra unit of the good or service.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose a tax equal to the value of the marginal external cost at the optimal output is imposed on a pollution generating good. All of the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers