Outpul Price | MPC | MEB /MSC / MSB / 20 64 64 100 80 1 10 bo 80 60 १० 2 3 80 160 60 96 80 64 64 92 80 68 68 88 b 80 72 72 88 80 80 8 80 88 80 88 8 88 88 Firm will maximise 9 80 96. 8 96 88 Profit where MPC=MPB 10 80 112 4 112 84 at Q=7 Firm will adhere market. equilibrium 3. Socially Soually optimal output where MSC=MSB There is under production due to positic externalities At Q = 8 [soually optimal output) MSC=MS B J 678o ㄱ 16 12 81 MSB = MPB + MEB MSC = MPC + MEC where MEC = 0 Therefore MSC=MPC 1 See Table. 2
Outpul Price | MPC | MEB /MSC / MSB / 20 64 64 100 80 1 10 bo 80 60 १० 2 3 80 160 60 96 80 64 64 92 80 68 68 88 b 80 72 72 88 80 80 8 80 88 80 88 8 88 88 Firm will maximise 9 80 96. 8 96 88 Profit where MPC=MPB 10 80 112 4 112 84 at Q=7 Firm will adhere market. equilibrium 3. Socially Soually optimal output where MSC=MSB There is under production due to positic externalities At Q = 8 [soually optimal output) MSC=MS B J 678o ㄱ 16 12 81 MSB = MPB + MEB MSC = MPC + MEC where MEC = 0 Therefore MSC=MPC 1 See Table. 2
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
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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