solve the following? MSCS = MCb4.D=MSBeQuantity (millions of tons per year)1. The figure above shows the market for steel, the production of whichcreates pollution.а)What point represents the equilibrium price and what point represents theequilibrium quantity in an unregulated, competitive market?What area represents the deadweight loss of the unregulated, competitivemarket outcome?b)c)d)What point represents the efficient quantity?If the output level in part (c) was achieved through the use of agovernment imposed tax, what price would consumers pay? What pricewould the producers receive? What distance represents the amount of thetax?If government successfully uses marketable permits to eliminate theexternal cost, what point represents how much output would be produced?e)Price and cost (hundreds of dollars per ton)O......

Hi. Since there are multiple questions we will answer only the first three.

MSC S= MC 4. D=MSB Quantity (millions of tons per year) 1. The figure above shows the market for steel, the production of which creates pollution. a) What point represents the equilibrium price and what point represents the equilibrium quantity in an unregulated, competitive market? What area represents the deadweight loss of the unregulated, competitive market outcome? b) c) What point represents the efficient quantity? d) If the output level in part (c) was achieved through the use of a government imposed tax, what price would consumers pay? What price would the producers receive? What distance represents the amount of the tax? If government successfully uses marketable permits to eliminate the external cost, what point represents how much output would be produced? e) Price and cost (hundreds of dollars per ton) O...

MSC S= MC 4. D=MSB Quantity (millions of tons per year) 1. The figure above shows the market for steel, the production of which creates pollution. a) What point represents the equilibrium price and what point represents the equilibrium quantity in an unregulated, competitive market? What area represents the deadweight loss of the unregulated, competitive market outcome? b) c) What point represents the efficient quantity? d) If the output level in part (c) was achieved through the use of a government imposed tax, what price would consumers pay? What price would the producers receive? What distance represents the amount of the tax? If government successfully uses marketable permits to eliminate the external cost, what point represents how much output would be produced? e) Price and cost (hundreds of dollars per ton) O...

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 7E

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