Discuss the similarities and differences between "Cap and Trade" and a "Pigou Tax" as they apply to correcting for externalities.Focus on how each affects the price paid by consumers,the price received by producers,and the amount of revenue received by the government.Also discuss the potential problems with achieving the efficient outcome under each system.

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The Answer of Discuss the similarities and differences between "Cap and Trade" and a "Pigou Tax" as they apply to correcting for externalities.Focus on how each affects the price paid by consumers,the price received by producers,and the amount of revenue received by the government.Also discuss the potential problems with achieving the efficient outcome under each system.

Discuss the Similarities and Differences Between "Cap and Trade" and a "Pigou