The following demand and supply schedule represents the efficient private allocation of cell phones. P P* Q* D S a) Cellphone factories contribute impose a negative externality of air pollution on society. One the figure, draw in a supply curve that accounts for this externality. b) Indicate the socially efficient price and quantity, using the new supply curve that you've drawn.
The following demand and supply schedule represents the efficient private allocation of cell phones. P P* Q* D S a) Cellphone factories contribute impose a negative externality of air pollution on society. One the figure, draw in a supply curve that accounts for this externality. b) Indicate the socially efficient price and quantity, using the new supply curve that you've drawn.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 3PA
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