Which a government might respond to negative externality

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Firms that make and sell paper also create, as a by-product of the manufacturing process, a chemical called dioxin. Scientists believe that once dioxin enters the environment, it raises the population's risk of cancer, birth defects, and other health problems. Explain THREE (3) ways in which a government might respond to this negative externality. Describe the advantages and disadvantages of each solution.

Reference no: EM133337299

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