Use Figure: Efficiency and Pollution. Assume that firms are the only beneficiaries of pollution and that...

  

Transcribed Image Text:

Use Figure: Efficiency and Pollution. Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society. An optimal Pigouvian tax of pollution can move this market to the socially optimal quantity of pollution. per ton of Figure: Efficiency and Pollution Marginal social cost, marginal social benefit $25 MSC 22 20 17 15 12 10 2. MSB 0. 5 10 15 20 25 30 35 40 45 50 55 Quantity of pollution emissions (tons) $25 $15 $45 $5 Use Figure: Efficiency and Pollution. Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society. An optimal Pigouvian tax of pollution can move this market to the socially optimal quantity of pollution. per ton of Figure: Efficiency and Pollution Marginal social cost, marginal social benefit $25 MSC 22 20 17 15 12 10 2. MSB 0. 5 10 15 20 25 30 35 40 45 50 55 Quantity of pollution emissions (tons) $25 $15 $45 $5

Answer rating: 100% (QA)

Please ... View the full answer