demand for the X is described by the function q=240-2p. the private marginal cost of producing X is 40 per units. production of X generates a marginal external cost which is described by the function MEC= 0.3Q, where Q id the quantity of X produced. If the government taxed the production of X, which of the following tax rates on production would result in the socially efficient quantity of X being consumed? a) 10 per unit b) 30 c) 150 d) 20 e) 40 f) 50
demand for the X is described by the function q=240-2p. the private marginal cost of producing X is 40 per units. production of X generates a marginal external cost which is described by the function MEC= 0.3Q, where Q id the quantity of X produced. If the government taxed the production of X, which of the following tax rates on production would result in the socially efficient quantity of X being consumed? a) 10 per unit b) 30 c) 150 d) 20 e) 40 f) 50
Chapter8: Market Failure
Section: Chapter Questions
Problem 2P: Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and...
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demand for the X is described by the function q=240-2p. the private marginal cost of producing X is 40 per units. production of X generates a marginal external cost which is described by the function MEC= 0.3Q, where Q id the quantity of X produced. If the government taxed the production of X, which of the following tax rates on production would result in the socially efficient quantity of X being consumed?
a) 10 per unit
b) 30
c) 150
d) 20
e) 40
f) 50
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