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    Principles of Economics Study Set 8
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    Exam 8: Applications: The Costs of Taxation
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    The Optimal Tax Is Difficult to Determine Because Although Revenues
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The Optimal Tax Is Difficult to Determine Because Although Revenues

Question 170

Question 170

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The optimal tax is difficult to determine because although revenues rise and fall as the size of the tax increases, deadweight loss continues to increase.

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