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Business, 08.04.2020 23:32 nataliaaaaa10

The private marginal benefit of a product's consumption is PMB = 200 - 2Q, and the private marginal cost of its production is PMC = 2Q. The marginal external damage of this good's production is MD = 4Q. The government imposes a tax on each unit sold in an effort to internalize the externality. How high should the tax be set in order to achieve the social optimum?

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