On a supply-demand diagram, please show the tax needed to correct the externality if the amount of externality produced rises as output rises. Assume that the marginal private cost curve slopes upward.

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A: Then the market demand for public can be calculated as follows.

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A: Given Data So, P = MEC + MPC = 75 + 4Q Or, Q = (P / 4) - 18.75

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Q: O area C+ D+ G + H.

A:

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A: As a solution to the externality problem, compensation differs from taxes in that:

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A: Introduction  Externality occur is an economy when the production or consumption of a specific good…

Q: Let Q be quantity of beer (in packs) consumed in the US. Assume beer consumption imposes a negative…

A: * SOLUTION :-  * Private equilibrium : 100 - 2Q = 10+Q => 100-10 = Q+2Q   3Q = 90    Q = 30 and…

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