External costs associated with the production of cement

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Reference no: EM13696028

Suppose there are external costs associated with the production of cement. This means that government can best promote efficiency in the cement market by:

a. giving a tax break to cement manufacturers to induce higher production levels.

b. passing zoning restrictions to prevent cement plants from locating in residential neighborhoods.

c. protecting consumers from high prices using a subsidy.

d. negotiating trade agreements to increase export of this product and raise the demand.

Reference no: EM13696028

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