The following table shows the private value, private cost, a…
The following table shows the private value, private cost, and external cost for various quantities of output in a market. Quantity Private Value Private Cost External Cost 1 $14 $10 $2 2 $13 $11 $2 3 $12 $12 $2 4 $11 $13 $2 5 $10 $14 $2 6 $9 $15 $2 7 $8 $16 $2 How large would a corrective tax need to be to move this market from the equilibrium outcome to the socially-optimal outcome?