If a government accurately calculates the marginal external cost of pollution from a factory and imposes a tax of exactly that amount on each unit of output, the market failure will be fully and efficiently resolved, regardless of the factory's political influence or the public's perception of the tax.
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If a government accurately calculates the marginal external cost of pollution from a factory and imposes a tax of exactly that amount on each unit of output, the market failure will be fully and efficiently resolved, regardless of the factory's political influence or the public's perception of the tax.
When a government proposes a theoretically sound tax on industrial pollution that accurately reflects its social cost, but the legislation is defeated due to intense lobbying from affected corporations, the failure to resolve the externality is primarily due to a ____ factor.
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