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19%D Tue 10:09 ks Window Help ng cengage.com n subject) - mramadegmail.co Inbox (001-mamad72a Mind Teo - Cengage Learning Sea


Bookmarks Window Help W Tue ng cergage.com Hoon Chapter 10: External Mind top Cengage Learning mamad u n med CENGAGE MINDTAP
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The external cost is $ 225 per ton thus the social cost would be less than the equilibrium quantity.

Q Price Private + External cost = Social Cost
1 1350 150 + 225 = 375
2 1050 300 + 225 = 525
3 750 525 + 225 = 750
4 450 675 + 225 = 900
5 300 825 + 225 = 1050
6 225 975 + 225 = 1200

The market equilibrium quantity is 3.5 tons of paper. Socially efficient paper production = 3 tons of paper.

To create an incentive for the firm to produce the socially optimal quantity of paper, the government could impose a tax of $ 225 paper per ton.

I am really sorry I don't have access to the graphing tool thus I have constructed it manually please accept it it would be great help to me.

Supply Private Cost) PRICE (Dollars per ton of paper) Demand Private Value) 23 QUANTITY (Tons of paper)

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