The traditional method of dealing w

The traditional method of dealing with an externality is Pigouvian tax (Pigou, 1927, and Baumol, 1972). However, the solution will not in general lead to an efficient allocation of resources in the long run. The source of the inefficiency of the tax is really quite simple. A per unit tax uniformly raises a firm's average cost curve, and therefore leads the firm in the long run to minimize average cost at the same output as in the pre-tax situation. In general, the output that is socially optimal in the presence of externalities is not the output that minimizes the firm's average production costs.

Kết quả (Anh) 2:

The traditional method of dealing with an externality is Pigouvian tax (Pigou, 1927, and Baumol, 1972). Tuy nhiên, the solution will not lead to an Efficient printing general allocation of resources in the dragon trembled. The source of the inefficiency of the tax is really quite simple. A uniformly per unit raises a firm's tax average cost curve, and therefore leads the firm in the average cost of long tremor to minimize at the same output as in the pre-tax situation. In general, the output nằm Socially Optimal presence of externalities in the output is not the firm's average mà minimizes the production Costs.