Question: There is a negative externality associated with consuming an imported product of 33 per unit. This imported good cost $6 on the world market.

There is a negative externality associated with consuming an imported product of

There is a negative externality associated with consuming an imported product of 33 per unit. This imported good cost $6 on the world market. There is no negative externality from consuming the locally produced product, which cost $8 a unit to produce. What is the appropriate response from the government?

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