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Analyze how taxes or emissions standards could reduce the economic inefficiency that arises in a competitive market with a negative externality.

User Jakelit
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Let's analyze in the case of manufacturer's emission that cause polution

Usually, these pollution-producing companies are regulated to pay several amount of money in order to rehabilitate the environment that caused by their harmful material.

This is really inefficient , if they have to repair it, why allow them to destroy the environment in the first place ?

That's how emission standards could reduce the inefficiency
User Oftedal
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