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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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