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To achieve the social optimum,the government could set a tax equal to ________ per unit sold.
A) $6
B) $4
C) $2
D) $3
E) $5

Respuesta :

Answer:

A) $6

Explanation:

The equilibrium price arises when the marginal cost of private i.e. demand is $12 and when the social production cost is to be considered then the equilibrium price is $18

So, to accomplish the social optimum, the government should set a tax of

= $18 - $12

= $6

This shifted the private marginal cost to the left and there is yield to the social optimum

Hence, the correct option is A. $6

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