The external marginal cost of producing coal is MCexternal = 4Q while the internal marginal cost is MCinternal = 4Q. The inverse demand for coal is given by P=1800 - Q. If the government taxed output at $4 per unit, what would a competitive industry produce?

The external marginal cost of producing coal is MCexternal = 4Q while the internal marginal cost is MCinternal = 4Q. The inverse demand for coal is given by P=1800 - Q. If the government taxed output at $4 per unit, what would a competitive industry produce?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter28: Antitrust And Regulation

Section: Chapter Questions

Problem 7E

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

Please answer fast please help arjent and choice the correct option please answer

The external marginal cost of producing
coal is MCexternal = 4Q while the internal
marginal cost is MCinternal = 4Q. The
inverse demand for coal is given by P=1800
- Q. If the government taxed output at $4
per unit, what would a competitive industry
produce?
600
200
400
150

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