-In the above figure, in order to achieve efficiency, a tax of _______ per unit is needed.
A) $0
B) $3
C) $2
D) $6

Name: -In the above figure, in order to achieve efficiency, a tax of _______ per unit is needed. A) $0 B) $3 C) $2 D) $6
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Question

-In the above figure, in order to achieve efficiency, a tax of _______ per unit is needed.
A) $0 
B) $3 
C) $2 
D) $6

Quizplus · Accepted Answer

A tax of $2 per unit is needed to correct the market inefficiency, typically to address a negative externality, aligning the private cost with the social cost.

-In the Above Figure, in Order to Achieve Efficiency, a Tax