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Government realizes that gas production leads to a $1 marginal external cost. In order to internalize the negative externality stemming from gas production they decide
Government realizes that gas production leads to a $1 marginal external cost. In order to internalize the negative externality stemming from gas production they decide to levy a tax on sellers. How much should the tax be? Graph what would happen to supply and/or demand if there is a tax levied on sellers.
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