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Which of the following would be an appropriate government response to a positive externality? O Impose a per-unit tax on the production of each unit

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Which of the following would be an appropriate government response to a positive externality? O Impose a per-unit tax on the production of each unit of the good. Set up a system of marketable/tradable permits Subsidize production of the good Both A and B would be appropriate government responses to a positive externality

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