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(Solved): The accompanying graph depicts the marginal social cost (MSC) and the marginal social benefit (MSB) ...



The accompanying graph depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with pollution emissions. Assume the polluters bear none of the social cost of pollution and all of the benefits. Move point P to the socially optimal level of pollution. What is the socially optimal amount of pollution? tons What is the size of the tax that would move the market to this socially optimal quantity?

The accompanying graph depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with pollution
The accompanying graph depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with pollution emissions. Assume the polluters bear none of the social cost of pollution and all of the benefits. Move point to the socially optimal level of pollution. What is the socially optimal amount of pollution? What is the size of the tax that would move the market to this socially optimal quantity? perton


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