23 of 100 An advantage of the Pigouvian tax is that it causes firms to increase supply and reduce pollution does not require firms to find an efficient level of output makes the firms treat the tax similar to other costs; they then decrease supply, and thus decrease pollution creates an incentive for firms to avoid reducing pollution
23 of 100 An advantage of the Pigouvian tax is that it causes firms to increase supply and reduce pollution does not require firms to find an efficient level of output makes the firms treat the tax similar to other costs; they then decrease supply, and thus decrease pollution creates an incentive for firms to avoid reducing pollution
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 5QCMC
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