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Suppose the (private) benefit of aluminum production, MB = 900 2Q, is private information to the factory, and the best information the government has is
Suppose the (private) benefit of aluminum production, MB = 900 2Q, is private information to the factory, and the best information the government has is that MB^G = 800 2Q. If the government imposes a (per-unit) tax $t based on this wrong information, what would t be? What quantity would such a tax actually induce
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