K Steel production creates pollution. If a tax is imposed on steel production equal to the marginal external cost of the pollution it creates, OA. steel producers will continue to produce the inefficient quantity of steel OB. the deadweight loss created by steel producers will be cut to zero OC. steel producers will cut pollution to zero O D. the market price of steel will rise by the amount of the tax

Economics

Only typed answer  You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 3Q. The external marginal cost of producing the product is MCExternal = 6Q, and the internal cost is MCInternal = 14Q.   Instruction: Round your answers to the nearest two decimal places.   a. What is the socially efficient level of output?   units     b. Given these costs and market demand, how much output would a competitive industry produce?   units     c. Given these costs and market demand, how much output would a monopolist produce?   units     d. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.   Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit. Pollution taxes…

Supply 10.00 9.00 8.00 7.00 6.00 MSC 5.00 4.00 Demand 3.00 2.00 1.00 25000 50000 75000 100000 125000 150000 175000 200000 If a tax or subsidy were used to correct the externality, what would be chosen? O a. tax = $4 O b. subsidy = $3 O C. tax = $3 O d. subsidy = $4 B.