Refer to Table 3. How large would a subsidy need to be in this market to move the market from the equilibrium level of output to the socially-optimal level of output? Table 3The following table shows the private value, private cost, and social value for a market with apositive externality.QuantityPrivate ValuePrivate CostSocial Value12763422410321142818182551522226122619Refer to Table 3. How large would a subsidy need to be in this market to move the market from theequilibrium level of output to the socially-optimal level of output?314)

A positive externality is a benefit to a third party who is not part of the activity. It occurs when…

Answered: The following table shows the private…

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The following table shows the private value, private cost, and social value for a market with a positive externality.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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