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Reported Question / Answer
Q.) In comparing a subsidy for pollution control with a tax on pollutant emissions ,(i)Both subsidy and tax result in the same marginal conditions for pollution emissions.(ii)The subsidy results in excess production in the polluting industry, in both short and long run.
1)
Only (ii) is true
2)
Only (i) is true
3)
Both (i) and (ii) hold good.
4)
None hold good.
5)
NULL
Answer :
3
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