Use Figure: Negative Externality and Deadweight Loss I

Multiple Choice

Use Figure: Negative Externality and Deadweight Loss I. The figure shows the marginal benefit, marginal private cost, and marginal social cost that are associated with producing a good. The government should impose an excise tax of _____ to arrive at the socially optimal quantity.
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Figure: Negative Externality and Deadweight Loss I

A) $5
B) $4
C) $3
D) $2