Consider the graph below, illustrating a positive externality. Price 569 $57 $45 $33 $21 28 36 Positive externality graph (text description b. What is the efficient quantity? a. What is the market equilibrium quantity? D₂-marginal social benefit D,= marginal private benefit Quantity c. What is the efficient price? Do not include the $ in your answer. d. If the government wants to use a Pigovian subsidy to bring about the efficient level foutput, what should the value of the subsidy be (per unit)? Do not include $ in your answer.
Consider the graph below, illustrating a positive externality. Price 569 $57 $45 $33 $21 28 36 Positive externality graph (text description b. What is the efficient quantity? a. What is the market equilibrium quantity? D₂-marginal social benefit D,= marginal private benefit Quantity c. What is the efficient price? Do not include the $ in your answer. d. If the government wants to use a Pigovian subsidy to bring about the efficient level foutput, what should the value of the subsidy be (per unit)? Do not include $ in your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the graph below, illustrating a positive externality.
Price
$69
$45
$33
$21---
12
20
a. What is the market equilibrium quantity?
D₂= marginal social benefit
Positive externality graph (text description)
b. What is the efficient quantity?
D, marginal private benefit
wwwwww
Quantity
c. What is the efficient price? Do not include the $ in your answer.
d. If the government wants to use a Pigovian subsidy to bring about the efficient level of output, what should the value of the subsidy be (per unit)? Do not include the $ in your answer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F044e925c-6ea0-4acc-99ba-d6b887af95d9%2F0a5cf85f-c46f-4f78-8505-691c841e4b4f%2Fzoq139_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the graph below, illustrating a positive externality.
Price
$69
$45
$33
$21---
12
20
a. What is the market equilibrium quantity?
D₂= marginal social benefit
Positive externality graph (text description)
b. What is the efficient quantity?
D, marginal private benefit
wwwwww
Quantity
c. What is the efficient price? Do not include the $ in your answer.
d. If the government wants to use a Pigovian subsidy to bring about the efficient level of output, what should the value of the subsidy be (per unit)? Do not include the $ in your answer.
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