Use the Figure Below to Answer the Following Questions

question 35

Multiple Choice

Use the figure below to answer the following questions.
Figure 16.2.1
-Refer to Figure16.2.1.The figure shows the private marginal cost curve,the social marginal 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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