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Market supply in a competitive industry is ???? = ????. Demand is ???? = 100 - ????. Production creates pollution with a social cost of
Market supply in a competitive industry is ???? = ????. Demand is ???? = 100 - ????. Production creates pollution with a social cost of $1 per unit of output. In response to environmentalists, the government creates a tax of $2 per unit. Is overall welfare improved or reduced by the tax?
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