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The optimal level of output can be achieved by levying a tax on a company producing a negative externality. This should be set a level that is equal to (a) the marginal cost of a curve (b) the social marginal cost curve (c)

The optimal level of output can be achieved by levying a tax on a company producing a negative externality. This should be set a level that is equal to (a) the marginal cost of a curve (b) the social marginal cost curve (c)

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 41P: Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once...
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Hand written plz asap.... I'll rate sure plz hand written otherwise downvote

The optimal level of output can be achieved by levying a tax on a company producing a negative externality. This should be set a level that is equal to (a) the marginal cost of a curve (b) the social marginal cost curve (c) the different between the social marginal cost and the firm's marginal cost (d)the total of the social marginal cost and firm's marginal cost.
Transcribed Image Text:The optimal level of output can be achieved by levying a tax on a company producing a negative externality. This should be set a level that is equal to (a) the marginal cost of a curve (b) the social marginal cost curve (c) the different between the social marginal cost and the firm's marginal cost (d)the total of the social marginal cost and firm's marginal cost.
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