In the Figure Above,if a Pollution Tax Is Imposed That

question 179

Multiple Choice

In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then at the equilibrium,marginal social cost would ________ marginal benefit,and the quantity of chemical produced would be ________.

• A) exceed; above the efficient quantity
• B) exceed; below the efficient quantity
• C) be below; above the efficient quantity
• D) be below; below the efficient quantity
• E) equal; efficient

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Definitions:

Gray Market

The trade of legal goods through unauthorized distribution channels, which, while not illegal, is unofficial and may not be supported by the original manufacturer.

Unauthorized Vendors

Sellers who offer goods or services without the official permission or approval from the rightful owners or governing bodies.

Retail Price

The final price at which a product is sold to consumers, typically including markup from wholesale cost.

Parallel Importing

The practice of importing goods through channels that are unofficial, unauthorized, or unintended by the original manufacturer.