Table 10-4 Quantity 1 a tax of $6 2 3 14 6 7 a tax of $4 per unit of output a subsidy of $4 per unit of output unit of output per Private Value a subsidy of $6 per unit of output $46 $44 $42 $40 $38 $36 $34 Private Cost $21 $24 $27 $30 $33 $36 $39 External Cost $6 $6 $6 $6 Refer to Table 10-4. Which of the following policies would move the market from the market equilibrium to the socially optimal equilibrium? $6 $6 $6

Table 10-4 Quantity 1 a tax of $6 2 3 14 6 7 a tax of $4 per unit of output a subsidy of $4 per unit of output unit of output per Private Value a subsidy of $6 per unit of output $46 $44 $42 $40 $38 $36 $34 Private Cost $21 $24 $27 $30 $33 $36 $39 External Cost $6 $6 $6 $6 Refer to Table 10-4. Which of the following policies would move the market from the market equilibrium to the socially optimal equilibrium? $6 $6 $6

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 4CQQ

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