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    Principles of Microeconomics Study Set 8
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    Exam 10: Externalities and Property Rights
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    Refer to the Graph Below
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Refer to the Graph Below

Question 21

Question 21

Multiple Choice

Refer to the graph below. Refer to the graph below.   Assuming a marginal external cost equal to the tax shown in the above graph,the per -unit tax necessary to induce consumers to purchase the socially optimal quantity each year is A)  $1. B)  $2. C)  $3. D)  $4. E)  $6. Assuming a marginal external cost equal to the tax shown in the above graph,the per -unit tax necessary to induce consumers to purchase the socially optimal quantity each year is


A) $1.
B) $2.
C) $3.
D) $4.
E) $6.

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