Question: 2 Devise a tax plan that would (a) reduce the extent of automobile pollution, (b) provide an incentive for entrepreneurs to develop new products that

2 Devise a tax plan that would

(a) reduce the extent of automobile pollution, (b)

provide an incentive for entrepreneurs to develop new products that would limit pollution, and

(c) permit continued automobile travel for those willing to bear the total social costs. Explain how your plan would influence incentives and why it would work.

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