cost of coal Tumps is given by the following: MC=10+0.25Q. In addition, there is an external cost of coal lumps (E) to residents who live near the coal mine where E=0.5Q. If the market for coal lumps is competitive, the deadweight loss to society is equal to:
cost of coal Tumps is given by the following: MC=10+0.25Q. In addition, there is an external cost of coal lumps (E) to residents who live near the coal mine where E=0.5Q. If the market for coal lumps is competitive, the deadweight loss to society is equal to:
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 40P: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in...
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![The demand for coal lumps is given by the
following: p=180-0.25*Q. The private marginal
cost of coal lumps is given by the following:
MC=10+0.25Q. In addition, there is an external
cost of coal lumps (E) to residents who live near
the coal mine where E=0.5Q. If the market for
coal lumps is competitive, the deadweight loss
to society is equal to:
a. 0.
b. 7225.
c. 14450.
d. 28900.
e. None of the above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad7e613a-702e-43f5-9afd-5748a48d44c0%2F8efc63a2-b8a3-454c-a23a-b7f72922f131%2F9tn38e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The demand for coal lumps is given by the
following: p=180-0.25*Q. The private marginal
cost of coal lumps is given by the following:
MC=10+0.25Q. In addition, there is an external
cost of coal lumps (E) to residents who live near
the coal mine where E=0.5Q. If the market for
coal lumps is competitive, the deadweight loss
to society is equal to:
a. 0.
b. 7225.
c. 14450.
d. 28900.
e. None of the above.
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