If a Pigovian tax is too large,the resulting:
A)outcome will not maximize surplus.
B)quantity will be too high.
C)outcome will still be efficient.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

If a Pigovian tax is too large, it could lead to deadweight loss and reduce overall surplus. This means that the resulting outcome will not maximize surplus. Therefore, option A is the best choice.

If a Pigovian Tax Is Too Large,the Resulting