Taxes Essay. Mathematics and Economics Assignment. (Essay Sample)
Assume that you are the CEO of a company those activity releases pollutants in the river and have been subpoenaed to testify before a consumer affairs committee about your pricing practices following the broadcasting of business news segment stating that your markups was 2.5x of your costs. The consumer affairs committee is particularly interested to hear your company’s arguments against a per-unit tax that your company would pay to compensate for the pollution of the river. Articulate the arguments/strategies defending your position against the tax.
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Taxes
Microeconomics observe that the market is innocent until proven guilty it also states that the government is guilty until proven innocent. Economist also states that the only way to have zero pollution in the market is to have zero production (Solow 258). Since this is not possible and a solution that is fair to both the society and the firm is required. Those affected by the firm's externality have the right to be compensated but not at the expense of the firm.
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