Results in the social optimum

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Reference no: EM138937

Q. The private marginal cost is MCp = 80 + Q while the marginal harm to the rest of society from gunk is Suppose the inverse demand curve for paper is p = 200
MCg = Q.

a) What is the unregulated competitive equilibrium?

b) What is the social optimum? What specific tax per unit of output of gunk results in the social optimum?

c) What is the unregulated monopoly equilibrium?

Reference no: EM138937

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