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A Local Cafe That Allowed Patrons to Smoke Was Recently

Question 30

Multiple Choice

A local cafe that allowed patrons to smoke was recently forced to close its doors because it did not comply with local clean air standards.This decision provides an example of:


A) direct regulation of an externality
B) Pigovian taxes
C) a Coase theorem solution to an externality
D) unjustified discrimination against smokers

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