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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 40P: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in...

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