Practice: Based on the figure above, an unregulated market would produce:
The government can help when externalities exist.
Concept #1: Public Solutions to Externalities: Command-and-Control Policies and Corrective Pigovian Taxes and Subsidies
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Concept #2: Public Solutions to Externalities: Quantity Limits
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Practice: The figure above contains:
Practice: A per-unit _______________________ would result in the production of the socially optimal quantity.
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