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Dr. Mankiw's textbook indicates that taxes, or any interference in the competitive market, introduces inefficiencies. We have studied how taxes, whether imposed upon the supplier

Dr. Mankiw's textbook indicates that taxes, or any interference in the competitive market, introduces inefficiencies. We have studied how taxes, whether imposed upon the supplier or consumer, will result in reductions of consumer surplus and producer surplus - and thus, total surplus. Please suggest a condition where the imposition of a tax might actually result in an improvement of efficiency

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Recommended Textbook for

Principles of economics

Authors: N. Gregory Mankiw

6th Edition

978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042

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