The market equilibrium quantity is

$3\mathrm{.}5$

units of electricity, but the socially optimal quantity of electricity production is

units.

To create an incentive for the firm to produce the socially optimal quantity of electricity, the government could impose a

of $|$

per

unit of electricity.

The market equilibrium quantity is

units of electricity, but the socially optimal quantity of electricity productio

The market equilibrium quantity is

$3\mathrm{.}5$

units of electricity, but the socially optimal quantity of electricity productio subsidy

units.

To create an incentive for the firm to produce the socially optimal quantity of electricity, the government could impose a

$$

its.

unit of electricity.

of

per