Consider a competitive market in which the MPB = 180

Question

Consider a competitive market in which the MPB = 180 - 2q and the MSC = q.In this market, however, there is a positive consumption externality of $60 per unit consumed.What is the DWL that results in the market equilibrium?
A)$200
B)$600
C)$400
D)$500
E)$0

Quizplus · Accepted Answer

The Answer of Consider a competitive market in which the MPB = 180 - 2q and the MSC = q.In this market, however, there is a positive consumption externality of $60 per unit consumed.What is the DWL that results in the market equilibrium?
A)$200
B)$600
C)$400
D)$500
E)$0