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The government should not subsidize medical research Question 6Answer a. if the positive externalities from the research fall short of the cost of the research,
The government should not subsidize medical research Question 6Answer a. if the positive externalities from the research fall short of the cost of the research, including the deadweight losses from taxation. b. even if the positive externalities from the research exceed the cost of the research, including the deadweight losses from taxation. c. if the subsidy does not require raising taxes. d. if researchers do not collude to form a monopoly
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