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    Microeconomics Study Set 43
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    Exam 18: Externalities
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    If a Pigovian Tax Is Not Large Enough, the Resulting
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If a Pigovian Tax Is Not Large Enough, the Resulting

Question 65

Question 65

Multiple Choice

If a Pigovian tax is not large enough, the resulting market quantity will be _______ the efficient quantity.


A) equal to
B) more than
C) less than
D) set where social marginal cost equals

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