Asked by
Kyleigh Hendrix
on Dec 08, 2024Verified
Refer to Figure 16.5. The government decides to impose a tax on pollution emissions to cut total emissions in this industry in half, and based on this decision it has set the tax at $100 per ton of emissions. For Alpha, the tax is ________ than the marginal benefit it gets from polluting, and for Beta, the tax is ________ than the marginal benefit it gets from polluting.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Pollution Tax
A tax imposed by governments on emissions generated by businesses and industries, aimed at reducing environmental damage.
Marginal Benefit
The additional benefit received from consuming one more unit of a good or service.
- Learn about the effects of tax regulations on the pollution emission decisions made by firms.
Verified Answer
SA
Learning Objectives
- Learn about the effects of tax regulations on the pollution emission decisions made by firms.