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    Business
  3. Study Set
    Principles of Microeconomics
  4. Exam
    Exam 16: Externalities, Public Goods, and Common Resources
  5. Question
    When a Firm Imposes an External Social Cost, the Government
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When a Firm Imposes an External Social Cost, the Government

Question 92

Question 92

True/False

When a firm imposes an external social cost, the government should impose a tax exactly equal to the marginal social cost to ensure that the efficient level of output will be produced.

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