Question: Suppose that recycling rubber for sneakers creates an external benefit of $2.0 per ton of rubber. There are no external costs. The efficient amount of rubber will be recycled when the government creates a

1. Subsidy of more than $2.00 per ton of rubber.
2. Subsidy of $2.00 per ton of rubber.
3. Tax of more than $2.00 per ton of rubber.
4. Tax of $2.00 per ton of rubber.

Price: $2.99

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Deliverable: Word Document