Use the Figure Below to Answer the Following Questions

question 53

Multiple Choice

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. 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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Definitions:

Elongate

To lengthen or stretch out, often referring to cells, body parts, or organisms.

Hemicellulose

A class of polysaccharides found in plant cell walls that works alongside cellulose and lignin to provide structural support.

Xylose

A sugar extracted from wood or straw and used as a dietary supplement or in the production of materials such as xylitol.

Chains

Sequences of items or elements linked or connected together, often found in polymers, proteins, or chemical compounds.