The Imposition of a Per-Unit Tax on Polluting Firms Will

question 124

Multiple Choice

The imposition of a per-unit tax on polluting firms will result in the socially efficient level of production only if the tax equals:

• A)​the marginal social cost plus the marginal private cost.
• B)​the marginal social cost plus the marginal external cost.
• C)​the marginal social cost minus the marginal private cost.
• D)​the average total cost minus the average variable cost.

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Definitions:

Retailer

A business or person that sells goods directly to consumers for their use or consumption, rather than to other businesses or wholesalers.

Perpetual Inventory Systems

This approach to inventory accounting instantly captures sales or purchases of inventory through computerized point-of-sale systems and software for enterprise asset management.

Detailed Inventory Records

Comprehensive documents that track the quantity, value, and movement of inventory.

Periodic Inventory Systems

An inventory accounting system where updates to inventory levels are made at specific intervals rather than continuously.