Question: A per-unit tax is often put forward as an effective solution to the market failure created by negative externalities.How does the government determine the appropriate

A per-unit tax is often put forward as an effective solution to the market failure created by negative externalities.How does the government determine the appropriate size of the per-unit tax, and are there any circumstances where a per-unit tax would fail to eliminate the deadweight loss created by a negative externality?

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