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Use the Figure Below to Answer the Following Questions

Question 2

Multiple Choice

Use the figure below to answer the following questions. Use the figure below to answer the following questions. Figure 15.2.1 -Refer to Figure 15.2.1.The figure shows the marginal private cost curve,the marginal social cost curve and the market demand curve of a mining firm.To promote an efficient allocation of resources,the government could impose a constant per unit tax equal to A) P<sub>4</sub>. B) P<sub>1</sub>. C) P<sub>3</sub> - P<sub>1</sub>. D) P<sub>4</sub> - P<sub>1</sub>. E) P<sub>3</sub> - P<sub>2</sub>. Figure 15.2.1
-Refer to Figure 15.2.1.The figure shows the marginal private cost curve,the marginal social cost curve and the market demand curve of a mining firm.To promote an efficient allocation of resources,the government could impose a constant per unit tax equal to


A) P4.
B) P1.
C) P3 - P1.
D) P4 - P1.
E) P3 - P2.

Correct Answer:

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