The student includes relevant diagrams that effectively illustrate the chosen concept of Denmark's corporate carbon tax, with Figure 1.1 demonstrating market resource allocation and Figure 1.2 showing the impact of the carbon tax on internalizing external costs. However, the student has not accurately labeled all diagrams, as Figure 1.2 contains a misleading title and lacks crucial details, such as the tax rate and proper labeling of the MSC and MPC gap. Despite this, each diagram is presented with clear explanations that enhance the reader's understanding of the economic implications of the carbon tax, particularly regarding its effect on the marginal social cost curve and the associated welfare loss from overproduction.
