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n the figure given below, D1 and S1 are the private demand and supply curves, of a commodity produced by a competitive firm. S2 reflects
n the figure given below, D1 and S1 are the private demand and supply curves, of a commodity produced by a competitive firm. S2 reflects the social marginal cost of production, while S0 represents the external marginal cost. Which of the following policies can be adopted by the government to increase production from the equilibrium level to the efficient level? Provide a subsidy of $30 per unit Impose a tax of $100 per unit Provide a subsidy of $100 per unit Impose a tax of $20 per unit
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