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Suppose the Zapit Corporation Is Currently Producing 300,000 Units of Output

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Suppose the Zapit Corporation is currently producing 300,000 units of output. Marginal social cost of production is $45, marginal cost is $35, and marginal social benefit is $35. At the efficient level of output, 200,000 units, marginal social cost is $25, marginal cost is $22, and marginal social benefit is $25. If you are a government official wanting to impose a tax on the corporation, what per unit tax would you propose?

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The tax imposed on the corporation shoul...

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