Graph 10-1 -Refer to Graph 10-1. In the figure shown, an optimal government policy would be a tax on production to the value of: A) P₃ - P₁ B) P₃ - P₂ C) P₃ - P₁. D) The value of the optimal tax cannot be measured

Question

Quizplus · Accepted Answer

The optimal tax is the difference between the price with the tax and the price without the tax, which is P3 - P1.

Graph 10-1 -Refer to Graph 10-1. in the Figure Shown, an Optimal