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A hot sauce factory emits an unpleasant smell during production. Suppose the government forced the factory to internalize its negative externality; what would result? A.

A hot sauce factory emits an unpleasant smell during production. Suppose the government forced the factory to internalize its negative externality; what would result? A. demand curve for hot sauce shifts left B. demand curve for hot sauce shifts right C. Supply curve for hot sauce shifts left D. supply curve for hot sauce shifts right what is the right answerRefrigerator producers use CFC in production which has a number of external costs. Specifically, CFC destroys ozone in the atmosphere. Suppose the marginal external cost is $200 per refrigerator and the government levies a corrective tax of $400 per refrigerator. With this new tax. A. not enough refrigerators will be produced b. the price will be below the marginal social cost c. the price will be below the marginal social benefit d. the price will be below the marginal cost to produce refrigerators what is the right answeer

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