Business, 04.03.2021 20:10 eileentennyson

If there are important external benefits associated with the consumption of a product:. A. special excise taxes should be levied on producers of the product.
B. the market supply curve for the product lies too far to the right to provide an efficient allocation of resources.
C. the market demand curve understates the relative importance of the product and resources are therefore underallocated to its production.
D. government should enact legislation to prohibit the production of the commodity.

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If there are important external benefits associated with the consumption of a product:. A. special...

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