BN12.2 (b) (c)Case:The market for dry cleaning is reflected by the demand and supply curves (Q is inthousands):Pa = 5-QPs= 2 + 2QProducing dry cleaning creates ground water pollution with a constant marginalexternal cost of 1.2.Question:(b) Calculate the unregulated price and quantity of dry cleaning?(c) Calculate the efficient price and quantity from a societal perspective?

Externalities are side effects of economic activities that are faced by third parties. These effects…

Answered: The market for dry cleaning is…

The market for dry cleaning is reflected by the demand and supply curves (Q is in thousands): Pa = 5-Q Ps= 2 + 2Q Producing dry cleaning creates ground water pollution with a constant marginal

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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BN12.2 (b) (c)
Case:
The market for dry cleaning is reflected by the demand and supply curves (Q is in
thousands):
Pa = 5-Q
Ps= 2 + 2Q
Producing dry cleaning creates ground water pollution with a constant marginal
external cost of 1.2.
Question:
(b) Calculate the unregulated price and quantity of dry cleaning?
(c) Calculate the efficient price and quantity from a societal perspective?

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