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Kyleigh Hendrix
on Dec 08, 2024

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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.
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Stephany AbdelmalakDec 10, 2024
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