Multiple Choice
-Refer to the diagram above.One of the reasons that a per-unit tax will result in the socially efficient level of production is that
A) producers are forced to include all costs of production,including social cost,in their supply curve.
B) producers are given a chance to make extra profit after the tax is imposed.
C) producers are given a chance to make extra profit since consumers are willing to pay more.
D) the government is collecting extra tax revenue.
E) consumers no longer consume the harmful product.
Correct Answer:

Verified
Correct Answer:
Verified
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