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In the Figure Above,if a Pollution Tax Is Imposed That

Question 27

Multiple Choice

In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then when the market is in equilibrium,the deadweight loss is ________ per month.


A) $250 thousand
B) $125 thousand
C) $150 thousand
D) $50 thousand
E) zero

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