-The figure above shows the private marginal cost curve, the social marginal cost curve and the market demand curve. If a constant per unit tax is imposed that generates an efficient allocation of resources, then consumers pay a per unit price of

Question

Quizplus · Accepted Answer

The efficient allocation occurs where the social marginal cost curve intersects the market demand curve. At this point, the price consumers pay is P3.

-The Figure Above Shows the Private Marginal Cost Curve, the Social