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
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 24P: Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the...
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![QUESTION 8
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=
c) To achieve efficiency, the government can introduce a
Click Save and Submit to save and submit. Click Save All
*Select Answer*
$2 per unit subsidy
$4 per unit subsidy
$2 per unit tax
$4 per unit tax
40
41
43
45
50
51
53
55
rs.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F250f1121-2ee3-42ba-abe5-f19bba20f3e7%2F379a315f-da8e-4878-ae8f-9a7ba00b5d20%2Fj099cf_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 8
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=
c) To achieve efficiency, the government can introduce a
Click Save and Submit to save and submit. Click Save All
*Select Answer*
$2 per unit subsidy
$4 per unit subsidy
$2 per unit tax
$4 per unit tax
40
41
43
45
50
51
53
55
rs.
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