ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response to the market price, the quantity shown in the third column of Table 13.4 is supplied. If the firm were also to receive the broader social benefits of the new technology, the willingness to supply is shown in the fourth column. Table 13.4 Price Quantity Supplied If Firm Quantity Demanded Quantity Supplied Also Receives Social Benefits 15 800 500 710 16 740 540 740 17 680 580 770 18 620 620 800 19 560 660 830 20 500 700 860 If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be O $16,740 $17,680 $18,620 $19,660

ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response to the market price, the quantity shown in the third column of Table 13.4 is supplied. If the firm were also to receive the broader social benefits of the new technology, the willingness to supply is shown in the fourth column. Table 13.4 Price Quantity Supplied If Firm Quantity Demanded Quantity Supplied Also Receives Social Benefits 15 800 500 710 16 740 540 740 17 680 580 770 18 620 620 800 19 560 660 830 20 500 700 860 If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be O $16,740 $17,680 $18,620 $19,660

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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