Figure 10-2

-Refer to Figure 10-2.What is the socially optimal outcome for this market
A)it would optimize total well-being at Q₂.
B)it would benefit from a tax on the product.
C)it would benefit from a subsidy placed on the product.
D)it would optimize total well-being at Q₃.

Question

Figure 10-2
 
-Refer to Figure 10-2.What is the socially optimal outcome for this market
A)it would optimize total well-being at Q₂. 
B)it would benefit from a tax on the product. 
C)it would benefit from a subsidy placed on the product. 
D)it would optimize total well-being at Q₃.

Quizplus · Accepted Answer

The Answer of Figure 10-2
 
-Refer to Figure 10-2.What is the socially optimal outcome for this market
A)it would optimize total well-being at Q₂. 
B)it would benefit from a tax on the product. 
C)it would benefit from a subsidy placed on the product. 
D)it would optimize total well-being at Q₃.

Figure 10-2 -Refer to Figure 10-2.What Is the Socially Optimal Outcome for Socially