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The federal government decides to require that automobile

Question: The federal government decides to require that automobile manufacturers install new anti-pollution equipment that costs $2,000 per car. Under what conditions can carmakers pass almost all of this cost along to car buyers? Under what conditions can carmakers pass very little of this cost along to car buyers?

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Microeconomics: The federal government decides to require that automobile

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Microeconomics: The federal government decides to require that automobile

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