If Electric Utilities Continually Reduce Their Emissions of Sulfur Dioxide

question 124

Multiple Choice

If electric utilities continually reduce their emissions of sulfur dioxide,

• A)the utilities will eventually be forced to go out of business.
• B)the marginal benefit of additional emissions will rise.
• C)the marginal cost of further emissions will rise.
• D)the total benefit of sulfur dioxide emissions will fall.

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Definitions:

Excise Tax

A tax levied on specific goods, services, or activities, often aimed at discouraging their use or consumption.

Producers

Individuals or organizations that create goods or provide services, playing a crucial role in supplying the market.

Excise Tax

A tax directly levied on certain goods, commodities, and activities, such as alcohol, tobacco, and gasoline, often intended to discourage their use or generate revenue.

Fried Twinkies

A deep-fried snack made from an American Twinkie cake, often found at fairs and festivals as an example of indulgent carnival food.