When examining the right tax on a good that produces an externality, the tax should be such

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When examining the “right tax” on a good that produces an externality, the tax should be such that

a. It is greater than the externality.

b. It is less than the externality.

c. It is exactly equal to the externality.

d. It makes consumption prohibitively expensive for anyone.

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Issues in Economics Today

ISBN: 978-1259746390

8th edition

Authors: Robert C. Guell

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Question Posted: Apr 24, 2018 01:13 AM

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When examining the right tax on a good that produces an externality, the tax should be such

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c It is exactly equal to the externality E...View the full answer

Issues in Economics Today

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