ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response to the market price, the quantity shown in the third column of Table 13.4 is supplied. If the firm were also to receive the broader social benefits of the new technology, the willingness to supply is shown in the fourth column. Table 13.4 Price Quantity Supplied If Firm Quantity Demanded Quantity Supplied Also Receives Social Benefits 15 800 500 710 16 740 540 740 17 680 580 770 18 620 620 800 19 560 660 830 20 500 700 860 If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be O $16,740 $17,680 $18,620 $19,660
ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response to the market price, the quantity shown in the third column of Table 13.4 is supplied. If the firm were also to receive the broader social benefits of the new technology, the willingness to supply is shown in the fourth column. Table 13.4 Price Quantity Supplied If Firm Quantity Demanded Quantity Supplied Also Receives Social Benefits 15 800 500 710 16 740 540 740 17 680 580 770 18 620 620 800 19 560 660 830 20 500 700 860 If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be O $16,740 $17,680 $18,620 $19,660
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
Section: Chapter Questions
Problem 6PA
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Question
![ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology
will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response
to the market price, the quantity shown in the third column of Table 13.4 is supplied. If the firm were also to receive the
broader social benefits of the new technology, the willingness to supply is shown in the fourth column.
Table 13.4
Price
Quantity Supplied If Firm
Quantity
Demanded
Quantity
Supplied
Also Receives Social Benefits
15
800
500
710
16
740
540
740
17
680
580
770
18
620
620
800
19
560
660
830
20
500
700
860
If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be
O $16,740
$17,680
$18,620
$19,660](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd51d3000-09ea-4b2f-be86-8d5c0a77c67b%2F18dd1f2a-de22-479c-9a4f-808d04ed2950%2Fmhi5sbl_processed.png&w=3840&q=75)
Transcribed Image Text:ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology
will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response
to the market price, the quantity shown in the third column of Table 13.4 is supplied. If the firm were also to receive the
broader social benefits of the new technology, the willingness to supply is shown in the fourth column.
Table 13.4
Price
Quantity Supplied If Firm
Quantity
Demanded
Quantity
Supplied
Also Receives Social Benefits
15
800
500
710
16
740
540
740
17
680
580
770
18
620
620
800
19
560
660
830
20
500
700
860
If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be
O $16,740
$17,680
$18,620
$19,660
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