Suppose a firm producing roof shingles imposes a negative externality on the surrounding area due to the noxious fumes emitted from the plant.The private marginal cost,social marginal cost and marginal benefit associated with the production of the shingles are given by the following equations: MCP = 5 + 2Q MCS = 10 + 3Q MB = 50 - Q
The marginal external cost at the competitive equilibrium is per unit.
A) $25
B) $15
C) $10
D) $5
E) $20
Correct Answer:
Verified
Q51: Suppose a farm that is polluting an
Q82: Given that different firms typically have different
Q83: The marginal benefit of reducing pollution in
Q84: The diagram below shows the marginal costs
Q85: The table below shows the marginal
Q86: The diagram below shows the marginal cost
Q88: The table below shows the marginal
Q90: A paper mill discharges chemicals into a
Q91: One promising strategy for efficiently addressing the
Q92: Automobile emissions standards are an example of
A)tradable
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents