Question: e. Consider next the second-best case and suppose k 5 0.0025. For the same two income levels as in (d), what is the governments second-best

e. Consider next the second-best case and suppose k 5 0.0025. For the same two income levels as in (d), what is the government’s “second-best” income tax rate given that the tax system gives rise to the deadweight losses modeled in (c)?

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