Use the figure below to answer the following questions.
Figure 16.3.1
-Refer to Figure 16.3.1.The figure shows the marginal private benefit curve,the marginal social benefit curve,and the market supply curve.To promote an efficient quantity the government could grant a subsidy equal to
A) zero.
B) P1.
C) P3 - P1.
D) P4 - P1.
E) P2 - P1.
Correct Answer:
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