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Economy
Kulikov

A tax on cigarettes will have the effect of properly dealing with the externality unless the tax

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Answer:

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.

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