a. What is the market price (market value) of the product? 8 per unit b. What is the market output? unit(s) Assume that the product depicted above generates external costs in consumption of $4 per unit. c. What is the socially optimal output? unit(s) d. By how much does the market overproduce this good? 5.5 unit(s)

a. What is the market price (market value) of the product? 8 per unit b. What is the market output? unit(s) Assume that the product depicted above generates external costs in consumption of $4 per unit. c. What is the socially optimal output? unit(s) d. By how much does the market overproduce this good? 5.5 unit(s)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section5.2: Cloting Choices

Problem 1R

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