Business
Business, 06.03.2020 23:49, cal1805p8uo38

A policy maker is unsure of the true marginal damages associated with a good, but they know that the marginal externality is constant and somewhere between $10 and $50 per unit, so the regulator imposes a tax of $35.Even though the tax rate might be wrong, the regulator knows that imposing the tax raises social welfare compared to having no tax at all.
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