To correct the externality the government decides to impose


The private marginal benefit associated with a product's consumption is PMB = 360 - 4Q and the private marginal cost associated with its production is PMC = 6P.

Furthermore, the marginal external damage associated with this good's production is MD = 2P.

To correct the externality, the government decides to impose a tax of T per unit sold. What tax T should it set to achieve the social optimum?

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Financial Management: To correct the externality the government decides to impose
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