Providing a subsidy to correct for an overallocation

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Reference no: EM13150087

If the production of a product or service involves external benefits, then the government can improve efficiency in the market by: Providing a subsidy to correct for an overallocation of resources Providing a subsidy to correct for an underallocation of resources Imposing a corrective tax to correct for an overallocation of resources Imposing a corrective tax to correct for an underallocation of resources

Reference no: EM13150087

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