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Suppose that the extraction of a non-renewable resource generates a negative externality. An economist has estimated that the magnitude of the externality is $X per

Suppose that the extraction of a non-renewable resource generates a negative externality. An economist has estimated that the magnitude of the externality is $X per unit extracted and a unit tax is proposed to address this issue. Use the 4-quadrant Hotelling diagram to describe the resulting extraction path and price path if the externality was incorporated into the process. Does extraction of the resource happen quicker or take longer?

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