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barry1999 barry1999
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4 years ago
Recall the Application about the external cost of young drivers to answer the following question(s).


Recall the Application. If the external costs of drivers on average could be internalized by a vehicle mileage traveled tax of 4.4 cents per mile, then you would expect that to fully internalize the external costs of accident by drivers younger than 25 to be:

▸ 4.4 cents per mile.

▸ higher than 4.4 cents per mile.

▸ lower than 4.4 cents per mile.

▸ zero as there are no externalities in driving.
Textbook 
Microeconomics: Principles, Applications, and Tools

Microeconomics: Principles, Applications, and Tools


Edition: 8th
Authors:
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Mtoney9Mtoney9
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4 years ago
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