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Consider a market that produces a good that has a negative externality. Which of the following policies would help bring the market towards an optimal
Consider a market that produces a good that has a negative externality. Which of the following policies would help bring the market towards an optimal outcome? Group of answer choices Set a tax equal to the external cost. Set technical requirements on the product, designed to reduce the externality it generates. Have the government produce the good instead of private industry. Set a maximum quantity that can be sold in the market and make that maximum be equal to the optimal quantity
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