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    Microeconomics Study Set 10
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    Exam 18: Externalities
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    If a Pigovian Tax Is Too Large,the Resulting
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If a Pigovian Tax Is Too Large,the Resulting

Question 3

Question 3

Multiple Choice

If a Pigovian tax is too large,the resulting:


A) quantity will be too high.
B) outcome will not maximize surplus.
C) outcome will still be efficient.
D) All of these statements are true.

Correct Answer:

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