If a Pigovian Tax Is Not Large Enough, the Resulting

question 65

Multiple Choice

If a Pigovian tax is not large enough, the resulting market quantity will be _______ the efficient quantity.

• A)equal to
• B)more than
• C)less than
• D)set where social marginal cost equals

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Definitions:

Materials Requisitions

Documents used to request and track the transfer of materials from inventory for production or other uses within a company.

Work in Process Inventory

Items that are currently being manufactured but have not yet reached completion.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product, directly contributing to its production.

Service Firms

Companies that provide intangible products or services to customers, as opposed to tangible goods.