The inverse demand curve for steel is P = 300-Q, where price P is dollars per ton and output Q is millions of tons of steel. The industry marginal cost of producing a ton of steel is MC = 11+ 2Q, which is the industry supply curve. The industry marginal external cost of the damage caused by pollution emitted during the production of one additional ton of steel is MEC¹ = 6 + Q. The socially efficient amount of steel to produce is million tons, and the socially efficient price is $ per ton. (Enter your responses as real numbers rounded to two decimal places.)

The inverse demand curve for steel is P = 300-Q, where price P is dollars per ton and output Q is millions of tons of steel. The industry marginal cost of producing a ton of steel is MC = 11+ 2Q, which is the industry supply curve. The industry marginal external cost of the damage caused by pollution emitted during the production of one additional ton of steel is MEC¹ = 6 + Q. The socially efficient amount of steel to produce is million tons, and the socially efficient price is $ per ton. (Enter your responses as real numbers rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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