8. (11 point.) A factory produces gadgets and generates pollution that causes $50 worth of damage per unit produced. The marginal private cost (MPC) of producing a gadget is given by the equation MPC = 20 + 0.5Q, where Q is the quantity of gadgets produced. The demand for gadgets is given by P = 100-Q, where P is the per-unit price of gadgets. Calculate the socially optimal quantity of gadgets produced.
8. (11 point.) A factory produces gadgets and generates pollution that causes $50 worth of damage per unit produced. The marginal private cost (MPC) of producing a gadget is given by the equation MPC = 20 + 0.5Q, where Q is the quantity of gadgets produced. The demand for gadgets is given by P = 100-Q, where P is the per-unit price of gadgets. Calculate the socially optimal quantity of gadgets produced.
Chapter1: Making Economics Decisions
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![8. (11 point.) A factory produces gadgets and generates pollution that causes $50 worth of
damage per unit produced. The marginal private cost (MPC) of producing a gadget is given
by the equation MPC = 20 + 0.5Q, where Q is the quantity of gadgets produced. The
demand for gadgets is given by P = 100-Q, where P is the per-unit price of gadgets.
Calculate the socially optimal quantity of gadgets produced.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e7988d7-b6f7-4f8e-9c47-7683470f8783%2Fbf1cee82-3824-40a5-a91b-12f56f4761bc%2Ff0wal6n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. (11 point.) A factory produces gadgets and generates pollution that causes $50 worth of
damage per unit produced. The marginal private cost (MPC) of producing a gadget is given
by the equation MPC = 20 + 0.5Q, where Q is the quantity of gadgets produced. The
demand for gadgets is given by P = 100-Q, where P is the per-unit price of gadgets.
Calculate the socially optimal quantity of gadgets produced.
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