Which of the following is INCORRECT about a corrective tax? Select one: a. The tax is equal to the marginal damage from pollution at the equilibrium quantity. b. The goal of a corrective tax is to restore efficiency. c. Producer surplus and consumer surplus will increase because the market becomes more efficient. d. One of its drawbacks is that it is hard to measure the extra social cost.

Business · College · Tue Nov 03 2020

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c. Producer surplus and consumer surplus will increase because the market becomes more efficient.

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