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Business, 21.10.2020 16:01 upadrastakameswari

Suppose that government officials have set an emissions tax to reduce pollution. Assume that the optimal tax would be $1,500, but government officials have set the tax at $500. At the equilibrium with the $500 tax: a. there will be too much pollution. b. the marginal social cost of pollution will be less than $500. c. the marginal social benefit of pollution will be less than $500. d. the marginal social benefit of pollution will be more than $500.

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Suppose that government officials have set an emissions tax to reduce pollution. Assume that the opt...

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