Multiple Choice
Suppose fertiliser use on pastoral land causes water quality in surrounding areas to fall.If a tax on fertiliser was set at the optimal level:
A) farmers would choose not to use any fertiliser
B) farmers fully internalise the pollution costs of the fertiliser
C) farm output would be maximised
D) the value to consumers of pastoral products would exceeds the cost of production (including tax) at the market equilibrium
Correct Answer:
Verified
Correct Answer:
Verified
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