Economics · Environmental Economics
In a Pigouvian framework, the optimal corrective tax on pollution equals the:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1marginal abatement cost
- 2average external damage
- 3marginal external damage at the socially efficient output level✓
- 4total social cost of production
Correct answer
marginal external damage at the socially efficient output level
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