If a Pigovian Tax Is Not Large Enough,the Resulting Market

question 68

Multiple Choice

If a Pigovian tax is not large enough,the resulting market quantity:

• A) will be equal to the efficient quantity.
• B) will be more than the efficient quantity.
• C) will be less than the efficient quantity.
• D) will be where the social marginal cost equals the social marginal benefit.

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