Concept
Version 6
Created by Boundless
Tax
Corrective Tax
A tax shifts the marginal private cost curve up by the amount of the tax. This gives producers an incentive to reduce output to the socially optimum level.
Source
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"Social cost with tax."
http://hhttp//en.wikipedia.org/wiki/File:Social_cost_with_tax.svg
http://hhttp//en.wikipedia.org/wiki/File:Social_cost_with_tax.svg
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