Question

Pollution Taxes. A tax of $12 per unit of pollution is imposed. How much pollution will get cleaned up?
A: 1 10 18 20 22
B: 2 3 5 7 9
C: 4 6 8 28 30

Answer 1

If a pollution tax of $12 per unit of pollution is imposed, then for all the firms production with pollution will be much more expensive, so all of them will produce less and some amount of pollution will get cleaned up, but there is not enough data to compute the exact amount.