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Socially optimal quantity in market

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Reference no: EM131368218

Supply and demand in a competitive market are given respectively by q = 4p and q = 30 - 2p. If the production of the good imposes a negative externality that generates an external cost for the society of 3 euros per unit exchanged, what is the socially optimal quantity in this market?

(a) q = 20

(b) q = 5

(c) q = 7

(d) q = 16

With calculation please

Reference no: EM131368218

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