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FIGURE 12-5 Price i1l0 ....,.. ...,. .u IIII SIIO Quantitvrwn want 7. Refer to Figure 12-5, which represents the market for pulp, The production of
FIGURE 12-5 Price i1l0 ....,.. ...,. .u IIII SIIO Quantitvrwn want 7. Refer to Figure 12-5, which represents the market for pulp, The production of pulp creates dioxin emissions. Suppose the market is currently producing at the profitmaximizing point, and the government wants to impose a tax to correct the overallocation of resources caused by the externality. What amount of tax per 1000 tonnes would accomplish this goal? a. $15 b. $25 c. $40 d. $190
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