Suppose that electricity producers create a negative externality equal to $6 per unit. Further suppose that the government imposes a $8 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?.

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08-11-2022
Business

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Suppose that electricity producers create a negative externality equal to $6 per unit. Further suppose that the government imposes a $8 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?.

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-11-14T04:21:44-05:00

The after-tax equilibrium quantity is less than the socially optimal quantity.

After-tax income is the net quantum of income available to invest, save, or consume after civil, state, and withholding levies have been applied your disposable income.

To calculate after-duty income, the deductions are abated from gross income.
The difference is the taxable income, on which income levies are due. After-duty income is the difference between gross income and the income duty due.

A before-duty donation is a quantum subtracted from your ahead- duty payment. This is also appertained to as payment immolation. These benefactions count toward your concessional donation cap for the fiscal time. An after-duty donation is a quantum that Payroll deducts from your after-duty payment.

Learn more about After-tax here: https://brainly.com/question/25790997

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