Microeconomics
Solutions
Microeconomics
What condition must be satisfied for a tax to adjust correctly for a negative externality?
The condition that must be stratified for adjusting the tax to negative externality.
When a cost is imposed on the third party who is not directly involved in an economic transaction is called negative externality or negative externality that creates marginal social cost. The marginal social cost is the sum of marginal private cost and marginal external cost
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