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(a)Consider a local market for firewood, which is associated with negative health outcomes due to its contribution to air pollution. Currently, 60 homes burn firewood.

(a)Consider a local market for firewood, which is associated with negative health outcomes due to its contribution to air pollution. Currently, 60 homes burn firewood. The local council wishes to reduce this number to 40 homes. What is the minimum sized Pigouvian tax that will achieve this policy goal?

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