When examining the right tax on a good that produces an externality, the tax should be such
Question:
When examining the “right tax” on a good that produces an externality, the tax should be such that
a. It is greater than the externality.
b. It is less than the externality.
c. It is exactly equal to the externality.
d. It makes consumption prohibitively expensive for anyone.
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c It is exactly equal to the externality E...View the full answer
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