If the Government Wants to Ensure That Producers Fully Internalize

question 128

Multiple Choice

If the government wants to ensure that producers fully internalize the marginal external cost associated with the pollution they emit,then it is necessary to

• A)accurately measure that external cost.
• B)first ensure that firms are operating at their profit-maximizing level of output.
• C)determine the long-run average cost structure for the firms.
• D)determine the short-run average cost structure for the firms.
• E)eliminate all the pollution the firm emits.

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Definitions:

Half-Lives

The time required for half of the atoms in a radioactive sample to decay into other elements or isotopes.

Half-Lives

The time required for a quantity to reduce to half its initial value, commonly used in the context of radioactive decay.

Half-Life

The time required for half of the atoms in a sample of a radioactive substance to undergo radioactive decay.