Question: If a tax equal to the external cost is put in place then what can be said about the price and quantity? Multiple choice question.

If a tax equal to the external cost is put in place then what can be said about the price and quantity? Multiple choice question. The price will be efficient but the quantity produced will be in excess of what is optimal. The price and quantity will be at an efficient level. The price will be higher than optimal but the quantity produced is efficient. The price will be efficient but the quantity produced will be at a point less than optimal

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