widget industry.? Assume that the supply and demand curves are linear and that the market price of a widget is $20. If the government imposes a tax equal in value to the cost of the pollution, then firms would continue to produce widgets if
a. the cost imposed by the pollution is less than $20 per widget produced.
b. the private cost of producing a widget equals the cost of the pollution generated per widget.
c. $20 minus the private cost of producing a widget is greater than the cost of the pollution generated per widget.
d. $20 minus the private cost of producing a widget is less than the cost of the pollution generated per widget.
a. the cost imposed by the pollution is less than $20 per widget produced.
b. the private cost of producing a widget equals the cost of the pollution generated per widget.
c. $20 minus the private cost of producing a widget is greater than the cost of the pollution generated per widget.
d. $20 minus the private cost of producing a widget is less than the cost of the pollution generated per widget.