A tax on cigarettes will have the effect of properly dealing with the externality unless the tax
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A tax on cigarettes will have the effect of properly dealing with the externality unless the tax
A)is lower than the marginal external costs.
B)is so high that it generates a black market.
C)causes people to use smoke less.
D)is lower than the marginal external costs or it is so high that it generates a black market.
Explanation:
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