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Business, 14.12.2019 05:31 jordanfwtm

The private marginal benefit associated with a product’s consumption is pmb = 540 − 6q and the private marginal cost associated with its production is pmc = 8q. furthermore, the marginal (external) damage associated with this good’s production is md = 4q. to correct the externality, the government decides to impose a tax of t per unit sold. what tax t should it set to achieve the social optimum?

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The private marginal benefit associated with a product’s consumption is pmb = 540 − 6q and the priva...
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