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.
Correct Answer:
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