There are two coal-burning electrical utilities-one in tiny. rural Wanunu, Montana, and another in metropolitan Detroit. Michigan-and each produces the same amount of pollution per unit of output. If a permit tax is going to be used to force these firms to internalize pollution costs, the tax levied should be O higher in Wanunu than in Detroit. the same in each city. O less than zero in each city. O higher in Detroit than in Wanunu.

There are two coal-burning electrical utilities-one in tiny. rural Wanunu, Montana, and another in metropolitan Detroit. Michigan-and each produces the same amount of pollution per unit of output. If a permit tax is going to be used to force these firms to internalize pollution costs, the tax levied should be O higher in Wanunu than in Detroit. the same in each city. O less than zero in each city. O higher in Detroit than in Wanunu.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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