To Reach an Economically Efficient Output Level,the Size of an Excise

question 8

Multiple Choice

To reach an economically efficient output level,the size of an excise tax imposed on a firm generating a negative externality should be

• A)the firm's marginal cost.
• B)the social marginal cost.
• C)the difference between the social marginal cost and the firm's marginal cost.
• D)the sum of the social marginal cost and the firm's marginal cost.

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Definitions:

Population Proportion

The fraction or percentage of a total population that exhibits a particular characteristic or attribute.

Random Sample

A sample drawn from a population where each member has an equal chance of being selected, aiming for fair representation.

Confidence Bound

The upper or lower value that defines the range within which a given population parameter is estimated to lie, with a certain degree of confidence.

Independent Samples

Two or more groups of data that are collected from unrelated or non-matching subjects in an experiment or observational study.