Price of pizza rolls ($) 1 6 5 14 13 DMSB) 12 11 10 Dmarket S(MPC) 0123 456 8 9 10 11 12 13 14 Quantity of pizza rolls 2. In the diagram above, is there a positive or negative externality? How do you know? 3. What is the market equilibrium? Calculate consumer and producer surplus at the market equilibrium. 1. What is the socially efficient price and quantity? Calculate consumer and producer surplus at the socially optimal price and quantity. 5. What advice would an economist give in this situation? 6. I will reroll.
Price of pizza rolls ($) 1 6 5 14 13 DMSB) 12 11 10 Dmarket S(MPC) 0123 456 8 9 10 11 12 13 14 Quantity of pizza rolls 2. In the diagram above, is there a positive or negative externality? How do you know? 3. What is the market equilibrium? Calculate consumer and producer surplus at the market equilibrium. 1. What is the socially efficient price and quantity? Calculate consumer and producer surplus at the socially optimal price and quantity. 5. What advice would an economist give in this situation? 6. I will reroll.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 2CQQ
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