PS=QS.  Anchovy pizza smells bad.  The bad smell imposes an external cost on anyone near the pizza equal to $5 per pizza.  What is the socially efficient quantity of anchovy pizza productio

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 6QFR
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Suppose that demand for anchovy pizza is given by PD=50−QD, and the supply of anchovy pizza is given by PS=QS.  Anchovy pizza smells bad.  The bad smell imposes an external cost on anyone near the pizza equal to $5 per pizza.  What is the socially efficient quantity of anchovy pizza production?

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