A tax equal to the external cost of used paper that, Ask an Expert

Economics

A tax equal to the external cost of used paper that multiplication firms impose on paper airplane firms would:
A. provide multiplication firms with the incentive to increase their use of paper.
B. provide multiplication firms with the incentive to decrease their use of paper
C. provide multiplication firms with little incentive to search for alternative production methods that decrease paper use.
D. both b and c

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91035604

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