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Q. How do external costs level of output to produce and economic efficiency given a chart
Quantity Private Costs Social Costs Benefits
1 $2 $4 $12
2 $6 $10 $22
3 $12 $18 $30
4 $20 $28 $36
5 $30 $40 $40
How do calculate the level of output that will be produced? What is output that should be produced to achieve economic efficiency and the value to society for correcting the externality and the tax level that would be appropriate to internalize the externality?
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