The Marginal External Cost Associated with Air Pollution Increases with the Annual

question 41

Multiple Choice

The marginal external cost associated with air pollution increases with the annual output of a pollut?ing industry.At the current competitive equilibrium level of output per year, the marginal external cost is $10 per unit of output.To achieve efficiency, a corrective

• A)tax of $10 per unit of output is required.
• B)tax of more than $10 per unit of output is required.
• C)tax of less than $10 per unit of output is required.
• D)subsidy of $10 per unit of output is required.

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Definitions:

Fovea

A tiny depression in the retina where visual acuity is highest, due to the high concentration of cone cells.

Opponent-Process Theory

A psychological and neurological model that explains contrasting emotions and motivations, especially in response to addiction and emotional experiences.

Color-Sensitive Cones

Photoreceptor cells in the retina responsible for color vision, responding differentially to light of different wavelengths.

Cortex

The outermost layer of the brain, involved in higher-level functions such as consciousness, thought, emotion, and reasoning.