Business, 07.10.2021 14:00 sdolina5

The competitive market equilibrium price of sanitation services in a small town with no government-supplied sanitation services is $2 per trash pickup. There is a $1 marginal external benefit associated with each trash pickup. The elasticity of supply of trash pickups is infinite in the long run, implying a horizontal supply curve. To achieve the efficient output of sanitation services, Group of answer choices a corrective subsidy must increase the price paid by buyers to $3 per pickup. a corrective tax of $1 per pickup is required. a corrective subsidy must decrease the price paid by consumers of sanitation services to $1 per pickup. a corrective subsidy must increase the price received by suppliers to $3 per pickup.

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The competitive market equilibrium price of sanitation services in a small town with no government-s...

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