Suppose that demand for anchovy pizza is given by PD = 50 – QD, and the supply of anchovy pizza is given by PS = Q$. Anchovy pizza smells bad. The bad smell imposes an external cost on %3D anyone near the pizza equal to $5 per pizza. What is the socially efficient quantity of anchovy pizza production?

Suppose that demand for anchovy pizza is given by PD = 50 – QD, and the supply of anchovy pizza is given by PS = Q$. Anchovy pizza smells bad. The bad smell imposes an external cost on %3D anyone near the pizza equal to $5 per pizza. What is the socially efficient quantity of anchovy pizza production?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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