y y 1. The demand curve for pizzas is p = 20 – 5,000 and the supply curve is p = 4+ 5,000 y The marginal external cost from production of pizzas is MEC (y) 10,000 (i) Find the competitive equilibrium price and quantity. (ii) Find the socially optimal quantity. (iii) Find the equilibrium price and quantity when a per-unit tax equal to t is imposed on suppliers.
y y 1. The demand curve for pizzas is p = 20 – 5,000 and the supply curve is p = 4+ 5,000 y The marginal external cost from production of pizzas is MEC (y) 10,000 (i) Find the competitive equilibrium price and quantity. (ii) Find the socially optimal quantity. (iii) Find the equilibrium price and quantity when a per-unit tax equal to t is imposed on suppliers.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 2CQQ
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