When people have identical tastes,social gain can be created from a common property by imposing a Pigovian tax on entrants.

Name: When people have identical tastes,social gain can be created from a common property by imposing a Pigovian tax on entrants.
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Question

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A Pigovian tax can help internalize the externality by aligning private costs with social costs, leading to an efficient allocation of resources even when tastes are identical.

When People Have Identical Tastes,social Gain Can Be Created from a Common