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-In the Above Figure,market Equilibrium at Point E Yields the Quantity

Question 55

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   -In the above figure,market equilibrium at point E yields the quantity X.The quantity  X ^ { * }  is socially optimal amount.The government can achieve the optimal outcome by A) setting the price at  P _ { 1 }  . B) establishing a tax of  \mathrm { P } _ { 3 }  -  P _ { 1 }  per unit of the good sold. C) establishing a tax of  \mathrm { P } _ { 3 }  -  P _ { 2 }  per unit of the good sold. D) setting the price at  \mathrm { P } _ { 4 }  .
-In the above figure,market equilibrium at point E yields the quantity X.The quantity XX ^ { * } is socially optimal amount.The government can achieve the optimal outcome by


A) setting the price at P1P _ { 1 } .
B) establishing a tax of P3\mathrm { P } _ { 3 } -
P1P _ { 1 } per unit of the good sold.
C) establishing a tax of P3\mathrm { P } _ { 3 } -
P2P _ { 2 } per unit of the good sold.
D) setting the price at P4\mathrm { P } _ { 4 } .

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