(Table: The Marginal Social Benefit of Computer Chips) The table The Marginal Social Benefit of Computer Chips shows several values for the price (P) and quantity demanded (QD) along the market demand curve for computer chips.The production of computer chips generates an external benefit in the form of a technology spillover.If the marginal social benefit is indicated by MSB, the optimal Pigouvian subsidy is equal to $10.False

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The optimal Pigouvian subsidy is equal to the difference between the marginal social benefit and the marginal private benefit. In this case, the marginal social benefit is $20 and the marginal private benefit is $10, so the optimal Pigouvian subsidy is $10.

(Table: the Marginal Social Benefit of Computer Chips) the Table