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Use the Figure Below to Answer the Following Questions

Question 81

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. If a constant per unit tax is imposed that generates an efficient allocation of resources, then the quantity produced is A) zero. B) Q₁. C) Q₂. D) Q₃. E) greater than Q₃.
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. If a constant per unit tax is imposed that generates an efficient allocation of resources, then the quantity produced is


A) zero.
B) Q₁.
C) Q₂.
D) Q₃.
E) greater than Q₃.

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