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When the marginal social benefit curve is relatively steep but unknown, a quantity-based instrument will yield a larger welfare loss on average than will a price-based instrumen…

When the marginal social benefit curve is relatively steep but unknown, a quantity-based instrument will yield a larger welfare loss on average than will a price-based instrumen…
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When the marginal social benefit curve is relatively steep but unknown, a quantity-based instrument will yield a larger welfare loss on average than will a price-based instrument.

a. True
b. False

User Stream
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1 Answer

3 votes

Answer:

b. False

Step-by-step explanation:

User Ncuillery
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