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Use the Figure Below to Answer the Following Questions

Question 53

Multiple Choice

Use the figure below to answer the following questions.
Use the figure below to answer the following questions. Figure 16.2.1 -Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. To promote an efficient allocation of resources, the government could impose a constant per unit tax equal to A) zero. B) P₁. C) P₃ - P₁. D) P₄ - P₁. E) P₃ - P₂.
Figure 16.2.1
-Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. To promote an efficient allocation of resources, the government could impose a constant per unit tax equal to


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

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