In the following graph, MPC and MSC represent the marginal private cost and marginal social cost of producing a good respectively. QD represents the demand for the good. Refer to the graph to answer the question. The amount of tax that the government should levy to bring output to the socially optimum level is equal to the distance between the points _____.

Question

In the following graph, MPC and MSC represent the marginal private cost and marginal social cost of producing a good respectively. QD represents the demand for the good. Refer to the graph to answer the question.  The amount of tax that the government should levy to bring output to the socially optimum level is equal to the distance between the points _____.

Quizplus · Accepted Answer

The Answer of In the following graph, MPC and MSC represent the marginal private cost and marginal social cost of producing a good respectively. QD represents the demand for the good. Refer to the graph to answer the question.  The amount of tax that the government should levy to bring output to the socially optimum level is equal to the distance between the points _____.

In the Following Graph, MPC and MSC Represent the Marginal