Multiple Choice

-In the above figure, market equilibrium at point E yields the quantity X. The quantity
is socially optimal amount. The government can achieve the optimal outcome by
A) setting the price at
.
B) establishing a tax of
-
per unit of the good sold.
C) establishing a tax of
-
per unit of the good sold.
D) setting the price at
.
Correct Answer:
Verified
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