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(d) (5 points) Recall our discussion of the three Coca Cola company employees offering to sell their closely guarded secret recipe to Pepsi. Provide some economic intuition into Pepsis decision. Briefly explain. (e) (5 points) Suppose that the government would like to punish producers of a certain product via tax- ation. To punish these producers should the government tax the firms or the consumers? Briefly explain.
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