Use the Following Figure to Answer the Question : Figure

Multiple Choice

Use the following figure to answer the question : Figure 20-2 : shows the competitive supply curve of a commodity is given by S₁,the private marginal benefit curve is D₁,the marginal social benefit curve is D₂,and the MB_E curve reflects the marginal external benefits.
-From Figure 20-2,we can conclude that to help the market attain the efficient level of output,the government should:

A) provide a subsidy of $8 per unit to the producer.
B) impose a tax of $4 per unit of production.
C) provide a subsidy of $3 per unit to the producer.
D) impose a tax of $3 per unit of production.