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Classical economists argue that, everything else remains the same (i.e. in the absence of externalities or market failure), any sort of government intervention on a
Classical economists argue that, everything else remains the same (i.e. in the absence of externalities or market failure), any sort of government intervention on a competitive market leads to inefficiency. If so then answer the following questions:
1.Do you think that the classical economists are right, in particular, for our case of where a sales tax is imposed on the sales of a physical store?(Tip: Need to provide an argument of Classical Economist regarding taxation(in terms of total surplus))
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