Multiple Choice
In Market X, the external benefit of consumption is $5. In Market Y, the external cost of consumption is $10. Efficiency in both markets could be achieved by:
A) a tax of $5 in Market X and a subsidy of $10 in Market Y.
B) subsidizing both markets.
C) taxing Market Y and subsidizing Market X.
D) taxing both markets.
Correct Answer:
Verified
Correct Answer:
Verified
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