Multiple Choice
Figure 10-9
-Refer to Figure 10-9, Panel (b) and Panel (c) . The installation of a scrubber in a smokestack reduces the emission of harmful chemicals from the smokestack. Therefore, a government policy that internalized the externality would move the quantity of smokestack scrubbers installed from point
A) Q2 to point Q3.
B) Q3 to point Q2.
C) Q4 to point Q5.
D) Q5 to point Q4.
Correct Answer:
Verified
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