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In the table below are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit
In the table below are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer. Marginal Social Marginal Private Marginal Social Output Benefit Cost Cost (units) (dollars) (dollars) (dollars) 80 0 20 70 10 30 60 20 40 QUAWNHO 50 30 50 40 40 60 30 50 70 20 60 80 If the government whishes to achieve the efficient allocation of resources, then it should [A] such that the socially optimal output is [B] O [A] impose a Piguvian Tax; [B] 2. O [A] grant a Piguvian Subsidy; [B] 6. O [A] impose a Piguvian Tax; [B] 3. O [A] impose a Piguvian Tax; [B] 4
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