Will you please have a subject matter expert answer this question and get back to me? I believe the public supply curve in b is supposed to be P = 17 (to include the marginal cost / price of the pack of cigarettes). Based on this, I believe the socially efficient quantity in c should be 83. I also think the Pigouvian tax in part e is supposed to be 11 to account for the private harm to the smoker. I don't think part f answers the question. With Coase, I believe the assignment of rights can be somewhat arbitrary. Thanks in advance
Will you please have a subject matter expert answer this question and get back to me? I believe the public supply curve in b is supposed to be P = 17 (to include the marginal cost / price of the pack of cigarettes). Based on this, I believe the socially efficient quantity in c should be 83. I also think the Pigouvian tax in part e is supposed to be 11 to account for the private harm to the smoker. I don't think part f answers the question. With Coase, I believe the assignment of rights can be somewhat arbitrary. Thanks in advance
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.9P
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Transcribed Image Text:Will you please have a subject matter expert answer this question and get back to me? I
believe the public supply curve in b is supposed to be P = 17 (to include the marginal cost /
price of the pack of cigarettes). Based on this, I believe the socially efficient quantity in c
should be 83. I also think the Pigouvian tax in part e is supposed to be 11 to account for the
private harm to the smoker. I don't think part f answers the question. With Coase, I believe the
assignment of rights can be somewhat arbitrary. Thanks in advance
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