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If an oil refinery is causing negative externalities, the government could require them to pay the external costs associated with operating in the market. This
If an oil refinery is causing negative externalities, the government could require them to pay the external costs associated with operating in the market. This can be done by: imposing a tax on the refinery as a means to deincentive production. imposing a subsidy on the refinery as a means to deincentive production. D requiring the refinery to change production techniques to reduce waste by products and emissions. requiring the refinery to pay for any environmental damage caused through production. requiring the refinery to change consumers a higher price for the products. O requiring the refinery to install pollution abatement equipment to reduce waste by products and emissions
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