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In the diagram above where the marginal damages are steep relative to the marginal control costs. The policymakers choose an emissions tax P1, that is
In the diagram above where the marginal damages are steep relative to the marginal control costs. The policymakers choose an emissions tax P1, that is lower than the optimal tax P*. As a result the net social loss is the area: a. A+B+C b. A+D c. A+C d. A
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