Answered: If there are externalities leading to…

If there are externalities leading to underproduction of a given good, command and control methods become a preferred method over Pigouvian taxes from an einciency perspective. True or False?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter27: Markets And Government

Section: Chapter Questions

Problem 12E

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If there are externalities leading to underproduction of a given good, command and control methods become a preferred method over Pigouvian taxes from an einciency perspective.

True or False?

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