If a Pollution Tax Is Placed on a Firm Emitting

question 85

Multiple Choice

If a pollution tax is placed on a firm emitting pollution,the firm will pay the tax,rather than reduce its emissions,as long as the tax is

• A)Above its MPC of pollution control
• B)Below its MPC of pollution control
• C)Above the MSC of pollution control
• D)Below the MSC of pollution control
• E)Reasonable

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Definitions:

Price of Chalk

The cost associated with purchasing chalk, which can vary based on quantity, quality, and place of purchase.

$6 Per Box

A set price of six dollars for each box of a certain item or product.

Ten Years

This term refers to a period or duration of ten consecutive years.

Index Number

A numerical indicator that reveals variations in a single variable or a collection of variables across a period.