A. The chemicals firm produces additional emissions as long as the marginal socialbenefit of doing so exceeds $40.OB. The chemicals firm chooses the socially efficient amount of emissions.OC. The total cost of pollution experienced by the hatchery is $80.O D. The government collects $160 in pollution tax revenue.OE. All of the above are true. The figure above shows the marginal social cost and marginal social benefit curvesfor a chemical producing firm operating upstream from a hatchery. If thegovernment imposes a $40 tax per ton of emissions, which of the following is true?MSC, MSB($/ton)100MSC9080A706050403020MSB10B.1.4.10Quantity of Emissions (tons per day)

Government taxes are meant to internalize the externality, the taxes are usually equal to the…

A. The chemicals firm produces additional emissions as long as the marginal social benefit of doing so exceeds $40. OB. The chemicals firm chooses the socially efficient amount of emissions. C. The total cost of pollution experienced by the hatchery is $80. OD. The government collects $160 in pollution tax revenue. OE. All of the above are true.

A. The chemicals firm produces additional emissions as long as the marginal social benefit of doing so exceeds $40. OB. The chemicals firm chooses the socially efficient amount of emissions. C. The total cost of pollution experienced by the hatchery is $80. OD. The government collects $160 in pollution tax revenue. OE. All of the above are true.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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