Use the Figure Below to Answer the Following Questions

question 81

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. If a constant per unit tax is imposed that generates an efficient allocation of resources, then the quantity produced is

• A)zero.
• B)Q₁.
• C)Q₂.
• D)Q₃.
• E)greater than Q₃.

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