Figure 15.2 Figure 15.2 shows a market with a negative externality.
-Refer to Figure 15.2.What is the private profit-maximising quantity for the firm?

Name: Figure 15.2 Figure 15.2 shows a market with a negative externality. -Refer to Figure 15.2.What is the private profit-maximising quantity for the firm?
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Question

Figure 15.2  Figure 15.2 shows a market with a negative externality.
-Refer to Figure 15.2.What is the private profit-maximising quantity for the firm?

Quizplus · Accepted Answer

The private profit-maximizing quantity for a firm is typically where marginal cost equals marginal revenue. In most diagrams, this is represented by Q_b.

Figure 152 Figure 15