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Suppose that instead of implementing the policy described in the article, the government introduces a per-unit tax of size P3-P1 on buyers. What is the
Suppose that instead of implementing the policy described in the article, the government introduces a per-unit tax of size P3-P1 on buyers.
What is the equilibrium that is achieved by the market after the tax?
True or false: This alternative policy fully internalises the externality.
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