Answered: True or False: In a market with a…

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True or False: In a market with a positive externality, a Pigouvian subsidy maximizes total surplus.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section10.1: Externalities And Market Inefficiency

Problem 1QQ

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In a market with a positive externality, a Pigouvian subsidy maximizes total surplus.

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