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    When a Pigouvian Subsidy Is Imposed on a Market with a Positive
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When a Pigouvian Subsidy Is Imposed on a Market with a Positive

Question 28

Question 28

Multiple Choice

When a Pigouvian subsidy is imposed on a market with a positive externality efficiency:


A) is not affected.
B) decreases.
C) increases.
D) drops to zero.

Correct Answer:

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