Question: A price-taking industry faces a market price of P = $50 and MC = 1/3q. However, producing q creates water pollution such that social

A price-taking industry faces a market price of P = $50 and

A price-taking industry faces a market price of P = $50 and MC = 1/3q. However, producing q creates water pollution such that "social marginal cost" is SMC = 1/2q. What would be the optimal Pigouvian tax in this market? $16.66 $18 $21.33 $25 a. b. C. d.

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