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Certain type of production causes a negative extenality Which of the following will N lead to a socially optimal output level

 Certain type of production causes a negative extenality. Which of the following will N lead to a socially optimal output level? (PT stands for the Pigouvian Tax rate a) collecting PT for each unit of output starting from the socially optimal level b) collecting a tax equal to the marginal extemal effect for a given output level, for each unit of output c) collecting PT for each unit of output collecting PT for each unit of output up to (and including) the socially optimal level None of the remaining answers is correct. e)

Apr 29 2020 View more View Less

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