Find the output level at market equilibrium

Reference no: EM131064740

A firm's Marginal Cost (MC) is given as: MC = 40 + Q; Marginal External Cost
(MEC) = ½ Q. Output is in 000's. Marginal Social Benefit (MSB) at market equilibrium is $50.

a) Find the output level at market equilibrium.

b) If Marginal Social Benefit (MSB) is $54 at the Socially Desirable Equilibrium (SDE); find the level of output at the Socially Desirable Equilibrium (SDE).

c) What is the per unit value of Marginal Social Cost (MSC) at socially

Desirable Equilibrium and value of Marginal Cost (MC) at Market Equilibrium?

Reference no: EM131064740

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