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If a pollution tax imposed on a firm is smaller than the external cost: A. the social production cost increases by the amount of the

If a pollution tax imposed on a firm is smaller than the external cost: A. the social production cost increases by the amount of the pollution tax. O B. from society's viewpoint, the firm is producing too much. O C. the externality is completely internalized. O D. the pollution tax transfers the full cost borne by people outside the firm back to the firm itself

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