Figure: Positive Externalities and the Production of Semiconductor Chips
(Figure: Positive Externalities and the Production of Semiconductor Chips) Look at the figure Positive Externalities and the Production of Semiconductor Chips.If the socially optimal production of chips is 500, the government could achieve the socially optimal level of production by granting a Pigouvian subsidy of:
A) $5.
B) $10.
C) $15.
D) $20.
Correct Answer:
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