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What are externalities? One of the ways in which government can respond to negative externalities in production in to impose a Pigouvian tax. Illustrate using
- What are externalities?
- One of the ways in which government can respond to negative externalities in production in to impose a Pigouvian tax. Illustrate using a diagram how such a tax can lead to a socially optimal quantity of production
- Taking education as an example, illustrate using a diagram how government would intervene in order to promote the positive externality arising from consumption of education.
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