The market for plasticans is perfectly competitive. Market Supply is given by Q=3P and Market Demand is given by Q=392-2P. Each extra unit of plastican produced creates a positive externality of $9. What is the efficient quantity? Enter a number only.

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 6QFR
icon
Related questions
Question

4

The market for plasticans is perfectly competitive. Market Supply is given by Q=3P and
Market Demand is given by Q=392-2P. Each extra unit of plastican produced creates a
positive externality of $9. What is the efficient quantity? Enter a number only.
Transcribed Image Text:The market for plasticans is perfectly competitive. Market Supply is given by Q=3P and Market Demand is given by Q=392-2P. Each extra unit of plastican produced creates a positive externality of $9. What is the efficient quantity? Enter a number only.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Nash Equilibrium
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning