a) The marginal external benefit at the competitive market equilibrium is equal to b) The size of the DWL in the competitive market equilibrium is

Microeconomics A Contemporary Intro
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Chapter17: Externalities And The Environment
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P
D
E
H
F
A B C
G
b) The size of the DWL in the competitive market equilibrium is
I
MPC = MSC
D = MPB
a) The marginal external benefit at the competitive market equilibrium is equal to
MSB
D
Q
Transcribed Image Text:P D E H F A B C G b) The size of the DWL in the competitive market equilibrium is I MPC = MSC D = MPB a) The marginal external benefit at the competitive market equilibrium is equal to MSB D Q
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