c. On your diagram from part b, indicate the optimal Pigouvian tax/subsidy (as the case may be).

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c. On your diagram from part

b, indicate the optimal Pigouvian tax/subsidy (as the case may be). Explain how this moves the market to the optimal outcome.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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