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Suppose a particular production process results in a large amount of pollution and the government ...

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Suppose a particular production process results in a large amount of pollution and the government ...

Suppose a particular production process results in a large amount of pollution and the government decides to impose a tax to correct for this externality, such that the socially optimal output will be produced. The tax will have the effect of shifting the

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marginal private benefit curve to the right.

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marginal social benefit curve to the right.

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marginal private cost curve to the left.

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marginal social cost curve to the left.

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marginal private cost curve to the right.

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Economics

Edition: 12^th

Author: Arnold

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Thanks for your help!!

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