How much should the tax be in dollars

Reference no: EM133255944

Assignment:

Burgers may have externalities. Please read Mark Bittman's opinion piece in the New York Times as an introduction to this topic.

President Warren decides to implement a Pigouvian burger tax/subsidy.

a. How much should the tax be in dollars?

b. Using information from the article estimate the total tax revenue collected. Is this an upper bound or a lower bound (assume the Pigouvian tax numbers are comprehensive)?

Reference no: EM133255944

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