The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below. Price Quantity Demanded Quantity Supplied without Paying Social Costs Quantity Supplied after Paying Social Costs 100 0 120 75 80 10 100 50 55 30 90 30 40 55 85 25 30 80 80 20 20 100 65 15 The equilibrium price and quantity when only private costs are taken into account are Question 11 options:   Price = $55, Quantity = 30   Price = $40, Quantity = 55   Price = $30, Quantity = 20   Price = $30, Quantity = 80

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Q: Hand written solutions are strictly prohibited

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A:

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Q: None

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