Use the figure below to answer the following questions.
Figure 16.2.1
-Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. If a constant per unit tax is imposed that generates an efficient allocation of resources, then producers receive a per unit price of
A) zero.
B) P₄.
C) P₃.
D) P₂.
E) P₁.
Correct Answer:
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