The accompanying diagram shows the private marginal cost (MCp) curve (which is also the market supply curve), and the private marginal benefit (MBp) curve (which is also the demand curve) for a good. Suppose that for any quantity of output, the good has an external marginal cost of $25 per unit. The allocatively efficient quantity of output is 70. (Type a whole number.) Price ($) 45 40 35 30- 25- 20- 15 10 5 S-MC₂ D-MBp 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity C G G

The accompanying diagram shows the private marginal cost (MCp) curve (which is also the market supply curve), and the private marginal benefit (MBp) curve (which is also the demand curve) for a good. Suppose that for any quantity of output, the good has an external marginal cost of $25 per unit. The allocatively efficient quantity of output is 70. (Type a whole number.) Price ($) 45 40 35 30- 25- 20- 15 10 5 S-MC₂ D-MBp 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity C G G

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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