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The Production of a Good Generates a Foul-Smelling Gas Which

Question 25

Multiple Choice

The production of a good generates a foul-smelling gas which is released into air by factories producing the good.
-Refer to the scenario above. Which of the following will help in internalizing the cost to society from pollution?


A) A Pigouvian tax
B) A Pigouvian subsidy
C) A price ceiling
D) A price floor

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