Suppose a firm has 10 employees,all of whom desire a more pleasant work environment.Accordingly,they are considering removing litter from the grounds of the plant.Each employee has an inverse demand for "clean grounds" of P = 100 - 2Q,where Q is the number of empty beer cans removed from the premises.The marginal cost of removing beer cans is $1 per can.
a.What is the socially efficient quantity of cans to remove?
b.How much would each person have to pay per can to remove the socially efficient quantity?

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The Answer of Suppose a firm has 10 employees,all of whom desire a more pleasant work environment.Accordingly,they are considering removing litter from the grounds of the plant.Each employee has an inverse demand for "clean grounds" of P = 100 - 2Q,where Q is the number of empty beer cans removed from the premises.The marginal cost of removing beer cans is $1 per can.
a.What is the socially efficient quantity of cans to remove?
b.How much would each person have to pay per can to remove the socially efficient quantity?

Suppose a Firm Has 10 Employees,all of Whom Desire a More