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What is the social optimal level of batteries

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Reference no: EM132027932

Battery creates a negative externality of $3 each. A city has a demand for batteries given by :P=200-0.003Q.

The supply of batteries is perfectly elastic at $50.

Please answer with a graph: What is the social optimal level of batteries? If there is a tax on batteries, what will it be?

Reference no: EM132027932

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