Business
Business, 14.04.2020 15:56, bahjaMcclatchey1110

Suppose that the external cost associated with chewing gum (sticky sidewalks) is 0.5 cents per packet chewed. Most economists would suggest: Question options: Subsidizing chewing gum since it is good for the teeth. Banning chewing gum, like Singapore, in order to keep the sidewalks clean. Doing nothing. Ignore small external costs because the cost of administering a chewing gum tax is likely large relative to the harm prevented. Introducing a tax of 0.5 cents per packet of gum to ensure that all external costs are internalized.

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Suppose that the external cost associated with chewing gum (sticky sidewalks) is 0.5 cents per packe...

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