Refer to the accompanying figure to answer the following questions.

-To achieve the social optimum,the government could set a tax equal to ________ per unit sold.

Question

Refer to the accompanying figure to answer the following questions.
 
-To achieve the social optimum,the government could set a tax equal to ________ per unit sold.

Quizplus · Accepted Answer

To achieve the social optimum, the government should set a tax equal to the external cost per unit sold. This tax internalizes the externality, making the private cost of production equal to the social cost. Without specific details on the external costs, it's impossible to provide a detailed explanation. However, if option A ($6) is the correct answer, it implies that the external cost per unit is $6.

Refer to the Accompanying Figure to Answer the Following Questions