Suppose an economy produces two goods, food and housing, from two inputs, capital and labor. Explain why

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Suppose an economy produces two goods, food and housing, from two inputs, capital and labor. Explain why in otherwise competitive economy, a tax on food will violate the output efficiency condition? Illustrate using a graph like Figure 16.17 (page 572).
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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