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Which of the following statements is not correct? a. Both regulation and corrective taxes can reduce pollution. b. An ideal corrective tax would equal the
Which of the following statements is not correct? a. Both regulation and corrective taxes can reduce pollution. b. An ideal corrective tax would equal the external cost from an activity with negative externalities. c. A corrective tax is less efficient than a regulation. d. A corrective tax encourages firms to further reduce pollution whereas a regulation provides no incentive to reduce pollution below the target
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