The market for good Q is perfectly competitive. However, it features negative externalities. Consumers' marginal benefit is MB = 90-Q Producers' marginal private cost is MC = Q. The production of this good generates a marginal exter a) In the equilibrium of this market, the perfect competit b) The socially efficient quantity is QSOC= *Select Answer* $2 per unit subsidy $4 per unit subsidy $2 per unit tax + 7 = 45 $4 per unit tax 40 c) To achieve efficiency, the government can introduce a 41 43 50

The market for good Q is perfectly competitive. However, it features negative externalities. Consumers' marginal benefit is MB = 90-Q Producers' marginal private cost is MC = Q. The production of this good generates a marginal exter a) In the equilibrium of this market, the perfect competit b) The socially efficient quantity is QSOC= Select Answer $2 per unit subsidy $4 per unit subsidy $2 per unit tax + 7 = 45 $4 per unit tax 40 c) To achieve efficiency, the government can introduce a 41 43 50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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