Question

A pollution charge gives the trucking industry an incentive to reduce its emissions, as long as the of reducing the emissions is A. total cost; less than the tax B. total cost; equal to the social cost C. marginal cost; less than the tax D. marginal cost; equal to the social cost

Answer 1

A pollution charge gives the trucking industry an incentive to reduce its emissions, as long as the marginal cost of reducing the emissions is less than the tax. Option C is correct.

What is the marginal cost?

The marginal cost is the rise in production costs caused by the manufacture of more product units. It's also referred to as the marginal cost of manufacturing. Calculating the marginal cost enables businesses to determine how volume produced affects cost and, eventually, profits.

A pollution tax incentivizes the trucking sector to decrease emissions as long as the marginal cost of decreasing emissions is less than the tax.

Therefore, option C is correct.

Learn more about the pollution charge, refer to:

brainly.com/question/28146881

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