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Business, 21.02.2020 03:39 ohgeezy

As explained in the chapter, economic efficiency is an outcome in a market when the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production.
Considering this explanation of economic efficiency, why does a tax creates deadweight loss (i. e. reduce surplus)?
What is the impact of a production tax on the equilibrium price? The equilibrium price .

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