Answered: A Pigouvian (corrective) tax…

A Pigouvian (corrective) tax successfully equates the tax rate with the O marginal damage. Opublic cost O total damage O public benefit of the externality.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section17.2: Internalizing Externalities

Problem 4ST

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A Pigouvian (corrective) tax successfully equates the tax rate with the
O marginal damage.
Opublic cost
total damage.
Opublic benefit.
of the externality.

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