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Suppose That Elementary Education Creates a Positive Externality

question 99

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Suppose that elementary education creates a positive externality. If the government subsidizes education by an amount equal to the per-unit externality it creates, then


Definitions:

Tying Contracts

Agreements where the buyer of a particular product is forced to buy an additional product from the same seller.

Consent Decrees

Legal agreements approved by a judge that settle a dispute without admitting guilt or wrongdoing, often used in antitrust or civil rights cases.

Antitrust Case

A legal case targeting at breaking up monopolies or preventing unfair business practices that restrict competition.

Microsoft

A multinational technology company known for producing software, consumer electronics, personal computers, and related services.

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