Demand 100 200 300 400 500 a. How many units of good are produced at the market equilibrium? b. How much is the external cot for each unit of good produced? c. How many units of good should be produced at the social optimum? d. In order to reach the social optimum, what should the government do? 4.

Demand 100 200 300 400 500 a. How many units of good are produced at the market equilibrium? b. How much is the external cot for each unit of good produced? c. How many units of good should be produced at the social optimum? d. In order to reach the social optimum, what should the government do? 4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

32
28
Social Cost
24
20
Private Cost
16
12
8
Demand
4
100
200
300
400
500
a. How many units of good are produced at the market equilibrium3
b. How much is the external cot for each unit of good produced?
c. How many units of good should be produced at the social optimum?
d. In order to reach the social optimum, what should the government do?

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