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April 17, 2014

Homework Help: Econ please help

Posted by Anil on Sunday, November 13, 2011 at 4:41pm.

Suppose local govt decides that a tax is the best way to address the inefficiency created by outdoor concerts. Assuming the social cost curve and the private cost curve are parallel to each other, how much does the tax on concerts have to be to achieve the socially optimal outcome?

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