Question: b. ** Calculate (for our numerical example) consumer surplus with and without the Pigouvian tax. (Skip this if you are not comfortable with integral calculus.)
b. ** Calculate (for our numerical example) consumer surplus with and without the Pigouvian tax.
(Skip this if you are not comfortable with integral calculus.) Why is (long-run) producer surplus, or long-run profit in the industry, unchanged by the tax?
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