I need help with the following problem.
I have a) Q= 5.625, b) Q= 8.18 but I am not sure about c . Please solve for a-d ans show your work so that I can compare with what I can up with.
The the external MC of pollution is MCexternal = 5Q and the internal marginal cost is MCinternal = 10Q.
Further, assume the inverse demand for the product, Q, is p = 90-Q . For the following questions calculate your answers to two decimal points.
a. What is the socially efficient level of output?
b. How much output would a competitive industry produce?
c. How much output would a monopoly produce?
d. What ways can government induce firms to produce the socially efficient level of output.© BrainMass Inc. brainmass.com March 4, 2021, 6:26 pm ad1c9bdddf
This solution provides steps necessary to determine the internal and external marginal cost.