The EPA determined the presence of a public health and ecological damage externality cost in dollars of MEC=0.020 associated with Qunits of nitrogen oxides output of a chemical process per month.There...


The EPA determined the presence of a public health and ecological damage externality cost in dollars of<br>MEC=0.020 associated with Qunits of nitrogen oxides output of a chemical process per month.There was<br>no evidence of external benefit. The marginal social benefit was estimated as MSB=50-0.4Q and the<br>marginal social cost as MSC=2+ 0.4Q<br>

Extracted text: The EPA determined the presence of a public health and ecological damage externality cost in dollars of MEC=0.020 associated with Qunits of nitrogen oxides output of a chemical process per month.There was no evidence of external benefit. The marginal social benefit was estimated as MSB=50-0.4Q and the marginal social cost as MSC=2+ 0.4Q
If you start with the competitive solution (Q=?) and you want to assess a Pigouvian tax equal to the<br>externality, how much would that tax be?<br>

Extracted text: If you start with the competitive solution (Q=?) and you want to assess a Pigouvian tax equal to the externality, how much would that tax be?

Jun 11, 2022
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