A Tax Equal to the External Marginal Cost of an Activity

question 123

Multiple Choice

A tax equal to the external marginal cost of an activity yields the efficient level of production because the tax

• A) forces producers to face all costs of production including the external cost.
• B) achieves the competitive equilibrium.
• C) ensures greater profits for the firm.
• D) eliminates all pollution.

---

Definitions:

4E Framework

A model that outlines four key elements of digital marketing: Excitement, Education, Experience, and Engagement.

GoPro Camera

A brand of action cameras designed for capturing high-quality video and photos in extreme conditions.

4E Framework

A marketing model focusing on four Es: Engagement, Experience, Exclusivity, and Emotion to enhance customer interaction and brand perception.

Mobile Phone

A portable telephone that can make and receive calls over a radio frequency link while the user is moving within a telephone service area.