QUESTION 3 Use the figure below to answer the following questions: Price and cost (dollars per tonne of paper) MSC 15 MC 14 13 12 11 D = MSB 30 40 50 60 70 Quantity of paper (tonnes) a. What is the price and quantity in the unregulated equilibrium in the paper market? b. A tax of per tonne is necessary to achieve the efficient output of tonnes of paper. c. What is the marginal external cost or benefit?

QUESTION 3 Use the figure below to answer the following questions: Price and cost (dollars per tonne of paper) MSC 15 MC 14 13 12 11 D = MSB 30 40 50 60 70 Quantity of paper (tonnes) a. What is the price and quantity in the unregulated equilibrium in the paper market? b. A tax of per tonne is necessary to achieve the efficient output of tonnes of paper. c. What is the marginal external cost or benefit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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