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With Technology Spillover,to Ensure That the Market Equilibrium Equals the Social

Question 134

Multiple Choice

With technology spillover,to ensure that the market equilibrium equals the social optimum,what should government do


A) It should impose a tax greater than the value of the technology spillover.
B) It should not allow production of any product that causes a technology spillover.
C) It should provide a subsidy equal to the value of the technology spillover.
D) It should reward those who benefit from the spillover.

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