Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 9SCQ: The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the...
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If the external marginal cost from Booming Berries is $20 per thousand pounds, what is the socially efficient price per pound?
Note- it's a negative externality
![Mark
Mega Beans Market
Booming Berries
That is correct!
Booming Berries
Booming Berries
130
Econ Mentor
120
What about the socially efficient market quantity? Is it greater or less than 50
thousand pounds?
110
DO
100
90
Clare
80
The socially efficient quantity is less than 50 thousand pounds.
70
60
50
Mark
40
That is correct!
30
20
10
Econ Mentor
D
10
20
30
40
50
60
70
80
90
100
110
120
Mark, if the external marginal cost from Booming Berries is $20 per thousand
pounds, what is the socially efficient price per pound?
Quantity (in thousands)
DO
Clare
Enter a response then click Submit below
$
Price (per pound)
으。](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2188b11-926f-4a02-9047-46f03f4937df%2Fd2417059-703f-4989-ab09-372471536e88%2F3fecs1f_processed.png&w=3840&q=75)
Transcribed Image Text:Mark
Mega Beans Market
Booming Berries
That is correct!
Booming Berries
Booming Berries
130
Econ Mentor
120
What about the socially efficient market quantity? Is it greater or less than 50
thousand pounds?
110
DO
100
90
Clare
80
The socially efficient quantity is less than 50 thousand pounds.
70
60
50
Mark
40
That is correct!
30
20
10
Econ Mentor
D
10
20
30
40
50
60
70
80
90
100
110
120
Mark, if the external marginal cost from Booming Berries is $20 per thousand
pounds, what is the socially efficient price per pound?
Quantity (in thousands)
DO
Clare
Enter a response then click Submit below
$
Price (per pound)
으。
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