Which of the following remedy would you suggest to reduce negative externality?

CA Foundation · Business Economics · MTP · June 2024
Which of the following remedy would you suggest to reduce negative externality?
(A) A. Pigaouvian Subsidy
(B) B. Excise duty
(C) C. Pigouvian taxes
(D) D. All of the above

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Pigouvian taxes

Topics: Theory of Production and Cost

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