Question

For Question 6 thru 11, utilize the following information: There is an externality of $18 per...

For Question 6 thru 11, utilize the following information:

There is an externality of $18 per unit of production.

The market demand and supply functions are

Pd = 125 - 0.3 Q

Ps = 11 + 0.9 Q

Question 6: What is the Externality without any regulation or taxes?

Question 7: What is the Total Social Welfare without any regulation or taxes?

Question 9: What is the Consumer Surplus after implementing the Pigouvian tax?

Question 10: What is the Producer Surplus after implementing the Pigouvian tax?

Question 11: What is the Total Social Welfare after implementing the Pigouvian tax?

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