Homework Answers
In this case, we have a negative externality.
Let us examine the given alternatives
A) Its a valid approach to reduce damages.
B) It attracts the firm to abate pollution i.e. helping the firm to reduce damages
C) It forces the firms to abate pollution.
D) Subsidy is given in case of positive externatility. So, its not a valid approach.
E) Taxing production will lead to social optimal output.
So, correct option is
D) offer a subsidy to firms to reduce the production costs.
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a given quantity of chemicals). The...
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Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
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