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:

Kant

Immanuel Kant was an 18th-century German philosopher who made significant contributions to metaphysics, epistemology, ethics, and aesthetics, notably known for his work "Critique of Pure Reason."

Acting Freely

Engaging in actions willingly and autonomously, making choices that are not coerced or predetermined by external forces.

Freedom of Personal Choice

Refers to an individual's right and ability to make decisions for themselves without undue interference from external entities.

Frithjof Bergmann

A philosopher best known for his work on the concept of New Work, emphasizing freedom and self-fulfillment in one's professional life.