The above graph is based on Sofia's production of gadgets. It shows the curves for Marginal Social and Private Costs (MSC and MPC), Marginal Social and Private Benefits (MSB and MPB), and Marginal Revenue (MR). Which of the following government actions would be most likely to correct the inefficiencies in the production of gadgets?

HIMFI-IMSI Price :5 10 1s Qua ntitv The above graph is based on Sofia's production of gadgets. It shows the curves for Marginal Social and Private Costs [MSC and MP0}, Marginal Social and Private Benefits {MSB and MP3}. and Marginal Revenue {MR}. Which of the following government actions would be most Iikelv to correct the inefficiencies in the production of gadgets? 0 A tax of $4 on the firm on each unit produced 0 A tax of $20 for rms that Ilvish to produce 6) A tax of $40 for firms that wish to produce 0 A subsidy of $4 given to the firm for each unit produced O No government action can correct the inefficiencies