In the small town of Hillsdale, the short-run supply curve in the market for paint is...
In the small town of Hillsdale, the short-run supply curve in the market for paint is P = 2Q and market demand is P = 144 − 4Q, where Q is measured in gallons. Producing paint creates pollution that is dumped into local rivers, however, which causes $12 of damage per can. By how much does the market miss the efficient quantity?
A. 10 more than the efficient quantity
B. 2 more than the efficient quantity
C. 10 fewer than the efficient quantity
D. 2 fewer than the efficient quantity
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