downstream from the factory. Producing an additional ton of bolts imposes a constant marginal external cost (MEC) of $315 per ton. The following graph shows the demand (marginal private benefits, or MPB) curve and the supply (marginal private costs, or MPC) curve for bolts. Use the purple points (diamond symbol) to plot the marginal social costs (MSC) curve when the marginal external cost is $315 per ton. PRECE (Dolars per ton of bots) 010 640 210 100 2 QUANTITY (Tons of bolts) 6 Supply (MPC) Demand (MPB) MSC

downstream from the factory. Producing an additional ton of bolts imposes a constant marginal external cost (MEC) of $315 per ton. The following graph shows the demand (marginal private benefits, or MPB) curve and the supply (marginal private costs, or MPC) curve for bolts. Use the purple points (diamond symbol) to plot the marginal social costs (MSC) curve when the marginal external cost is $315 per ton. PRECE (Dolars per ton of bots) 010 640 210 100 2 QUANTITY (Tons of bolts) 6 Supply (MPC) Demand (MPB) MSC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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