Suppose the production of a good x damages the environment, Ask an Expert

Economics

Suppose the production of a good X damages the environment (i.e. there is a negative externality). Using a diagram, show the dollar amount of ineciency generated by the free market. Briefly explain how a corrective tax or subsidy policy could help reduce the ineciency in the market.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91994665

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