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British economist Arthur Cecil Pigou proposed that governments can deal with externalities using taxation policy. His proposed tax was called Pigovian tax. At the current quantity of production, Company B (whose production process has negative externality ) has a marginal private cost of $2 per unit. The marginal external cost per unit is $1. In order for the Pigovian tax to be effective in reducing the negative externality, the tax must be set at $0.85 per unit. Select one: O True O False