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Unformatted text preview: e socially efficient point?
A) Government impose a $0.20 tax must on each unit of production.
B) Issue 35 tradable emissions permits.
C) There is no need for government intervention. The market equilibrium point is
already the socially efficient point.
D) Give every firm a permission to produce 42 unit of tobacco.
optimal quantity is 35, so if you have permits that you pass out and allow the firms to trade and
A, is wrong because not all firms have same production curve.
Version 1 Page 13 Use the following to answer question 60:
Figure: City with Two Polluters $800+$1400= $2400 $800 60. (Figure: City with Two Polluters) If the government wants to limit total pollution to
2,200 tons, it could impose an emissions tax of ________ on both firms.
61. When the allocation of resources and the distribution of goods is efficient, it is still often
possible to make some members of society better off.
62. Regardless of whether or not they pay for them,...
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This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07