If the government wanted to ensure that the market reaches the socially optimal equilibrium in the presence of a technology spillover, it should
A) impose a corrective tax on any firm producing a technology spillover.
B) offer tax credits to consumers who are adversely affected by the new technology.
C) subsidize producers by an amount equal to the value of the technology spillover.
D) provide research grants to those firms not currently engaging in research to increase competition in the industry.
Correct Answer:
Verified
Q141: Suppose that cookie producers create a positive
Q158: If the production of computer chips yields
Q356: When a market experiences a positive externality,
A)the
Q357: A positive externality occurs when
A)Jack receives a
Q358: Government intervention that aims to promote technology-enhancing
Q360: Which of the following is an example
Q362: Which of the following is the most
Q363: Which of the following is NOT a
Q364: Figure 10-9 Q366: Technology spillover occurs when
A)a firm passes the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents