The following equations represent the MWTP function and the private MC function in the market for some good where a negative externality (i.e. ,pollution)results in damages of $12 per unit of the good produced:
MWTP = 400 - Q^D
MPC = 55 + 0.5Q^S
Solve for the competitive market equilibrium output and the socially efficient level of output for this market.

Question

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The Answer of The following equations represent the MWTP function and the private MC function in the market for some good where a negative externality (i.e. ,pollution)results in damages of $12 per unit of the good produced: MWTP = 400 - Q^D MPC = 55 + 0.5Q^S Solve for the competitive market equilibrium output and the socially efficient level of output for this market.

The Following Equations Represent the MWTP Function and the Private