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 MarkMega Beans MarketBooming BerriesThat is correct!Booming BerriesBooming Berries130Econ Mentor120What about the socially efficient market quantity? Is it greater or less than 50thousand pounds?110DO10090Clare80The socially efficient quantity is less than 50 thousand pounds.706050Mark40That is correct!302010Econ MentorD102030405060708090100110120Mark, if the external marginal cost from Booming Berries is $20 per thousandpounds, what is the socially efficient price per pound?Quantity (in thousands)DOClareEnter a response then click Submit below$Price (per pound)으。

The negative externality will shift supply curve leftward by $20, to S1, as shown below.

Answered: If the external marginal cost from…

If the external marginal cost from Booming Berries is $20 per thousand pounds, what is the socially efficient price per pound?

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

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。

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