Multiple Choice
-In the above figure, market equilibrium at point E yields the quantity X. The quantity is socially optimal amount. The government can achieve the optimal outcome by
A) setting the price at .
B) establishing a tax of -
per unit of the good sold.
C) establishing a tax of -
per unit of the good sold.
D) setting the price at .
Correct Answer:

Verified
Correct Answer:
Verified
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