How to find a negative consumption externality on a graph
Автор: Econ Examples Travis Klein
Загружено: 2022-03-29
Просмотров: 104
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Text of problem:
Assume that the product depicted below generates external costs in consumption of $3 per unit.
(a) What is the market price (market value) of the product?
(b) Draw the social demand curve.
(c) What is the socially optimal output?
(d) By how much does the market overproduce this good?
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