In the case of externalities, appropriate government corrective policy would be a. taxes in the case of

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In the case of externalities, appropriate government corrective policy would be

a. taxes in the case of external benefits and subsidies in the case of external costs.

b. subsidies in the case of external benefits and taxes in the case of external costs.

c. taxes in both the case of external benefits and the case of external costs.

d. subsidies in both the case of external benefits and the case of external costs.

e. none of the above; the appropriate thing to do would be to do nothing.

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