i need this in wordsnot handwrittenreWrite itplease MEB MSC206410601660126481687280MSBOutput/ Price [MPCMSB = MPB + MEBMSC = MPC + MEC10064ľ80во१०80where MEC = 038016096Therefore MSC=MPC4806492J80688868072See Table.8878080888808888Firm will maximiseProfit where MPC=MPB980896.88108.0112411284at Q=7 Firm willachieve marketequilibrium3. Soually optimal output where MSC=MSBThere is under production due to positic externalitiesAt Q=8 [soually optimal output)MSC=M5 B∞∞∞∞∞∞ J88888962

When firm produces goods it doesn't consider positive externalities into account. And when firm…

Outpul Price | MPC | MEB /MSC / MSB / 20 64 64 100 80 1 10 bo 80 60 १० 2 3 80 160 60 96 80 64 64 92 80 68 68 88 b 80 72 72 88 80 80 8 80 88 80 88 8 88 88 Firm will maximise 9 80 96. 8 96 88 Profit where MPC=MPB 10 80 112 4 112 84 at Q=7 Firm will adhere market. equilibrium 3. Socially Soually optimal output where MSC=MSB There is under production due to positic externalities At Q = 8 [soually optimal output) MSC=MS B J 678o ㄱ 16 12 81 MSB = MPB + MEB MSC = MPC + MEC where MEC = 0 Therefore MSC=MPC 1 See Table. 2

Outpul Price | MPC | MEB /MSC / MSB / 20 64 64 100 80 1 10 bo 80 60 १० 2 3 80 160 60 96 80 64 64 92 80 68 68 88 b 80 72 72 88 80 80 8 80 88 80 88 8 88 88 Firm will maximise 9 80 96. 8 96 88 Profit where MPC=MPB 10 80 112 4 112 84 at Q=7 Firm will adhere market. equilibrium 3. Socially Soually optimal output where MSC=MSB There is under production due to positic externalities At Q = 8 [soually optimal output) MSC=MS B J 678o ㄱ 16 12 81 MSB = MPB + MEB MSC = MPC + MEC where MEC = 0 Therefore MSC=MPC 1 See Table. 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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