-Refer to the graph above to answer this question.If a per unit tax equal to the external costs was imposed on the sellers of this product,what would be the amount of the tax?
A)ab.
B)bc.
C)bd.
D)cd.

Question

-Refer to the graph above to answer this question.If a per unit tax equal to the external costs was imposed on the sellers of this product,what would be the amount of the tax?
A)ab. 
B)bc. 
C)bd. 
D)cd.

Quizplus · Accepted Answer

The correct amount of the tax would be bd, as this represents the external costs not accounted for in the market price, aligning the private cost with the social cost.

-Refer to the Graph Above to Answer This Question