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 = 20 +2Q, which is the industry supply curve. The industry marginal external cost of the damage caused by pollut emitted during the production of one additional ton of steel is MEC = 7+ 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
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 = 20 +2Q, which is the industry supply curve. The industry marginal external cost of the damage caused by pollut emitted during the production of one additional ton of steel is MEC = 7+ 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
Chapter1: Making Economics Decisions
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Transcribed Image Text: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 MC¹ = 20 + 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 = 7+ Q.
million tons, and the socially efficient price is $
The socially efficient amount of steel to produce is
decimal places.)
per ton. (Enter your responses as real numbers rounded to two
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