Use the figure below to answer the following questions.

Figure 16.2.1
-Refer to Figure 16.2.1.The figure shows the private marginal cost curve,the social marginal cost curve and the market demand curve.If a constant per unit tax is imposed that generates an efficient allocation of resources,then consumers pay a per unit price of

Question

Use the figure below to answer the following questions.

Figure 16.2.1
-Refer to Figure 16.2.1.The figure shows the private marginal cost curve,the social marginal cost curve and the market demand curve.If a constant per unit tax is imposed that generates an efficient allocation of resources,then consumers pay a per unit price of

Quizplus · Accepted Answer

The efficient allocation occurs where the social marginal cost curve intersects the market demand curve. At this point, the price consumers pay is P₃.

Use the Figure Below to Answer the Following Questions