Question: Consider Learning-By-Doing Exercise 17.2, with a socially efficient emissions fee. Suppose a technological improvement shifts the marginal private cost curve down by $1. If the

Consider Learning-By-Doing Exercise 17.2, with a socially efficient emissions fee. Suppose a technological improvement shifts the marginal private cost curve down by $1. If the government calculates the optimal fee given the new marginal private cost curve, what will happen to the following?
a) The size of the optimal tax
b) The price consumers pay
c) The price producers receive

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