(9 points) Consider the production of a good Q that causes an externality. Suppose the private marginal cost of production is PMC = 6. Demand for…
The Answer:
SMC = PMC +MD
6 + 1/2 Q = 10 – 1/2 Q => Q* = 4
Question: Where is the 10-1/2Q come from?
ORDER YOUR ORIGINAL PAPER
Request for a custom paper or place a new order
THE BEST CUSTOM ESSAY WRITING SERVICE AT YOUR FINGERTIPS
Forget All Your Assignment & Essay Related Worries By Simply Filling Order Form
