In a market, the private supply curve is given by P=2+3.10 and the private demand curve is given by P=71-4.80. The socially optimal quantity is 6. What is the value of the marginal external benefit / cost? In case of a marginal external cost, report a negative number. Answer:

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 6QFR
icon
Related questions
Question
Oc
In a market, the private supply curve is given by P=2+3.1Q and the
private demand curve is given by P=71-4.8Q. The socially optimal
quantity is 6. What is the value of the marginal external benefit cost?
In case of a marginal external cost, report a negative number.
Answer:
Transcribed Image Text:In a market, the private supply curve is given by P=2+3.1Q and the private demand curve is given by P=71-4.8Q. The socially optimal quantity is 6. What is the value of the marginal external benefit cost? In case of a marginal external cost, report a negative number. Answer:
Expert Solution
steps

Step by step

Solved in 3 steps with 14 images

Blurred answer
Knowledge Booster
Property Rights, Bargaining And The Coase Theorem
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning