Suppose the figure to the right represents the production


Suppose the figure to the right represents the production of a manufactured good. Production of this good generates volatile organic? compounds, which are a type of air pollution. As a? result, the cost of production to society is greater than the private cost of production. The marginal private cost of production is represented by MC 1 and the marginal social cost is represented by MC 2 . Suppose the government decides to impose a Pigovian tax to bring about an efficient level of output. What size should the tax? be? The government should levy a tax of $nothing per ton produced? (Enter your response as a whole? number.)

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Business Economics: Suppose the figure to the right represents the production
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