What is the socially optimal quantity-socially optimal price

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Suppose you are studying the recent rise in shale energy. You know the inverse demand function for shale energy is P = 100 - Qd. The supply of shale energy is P = Qs. However, shale energy can potentially lead to pollution. The marginal social cost curve is equal to P = 3Qs.

What is the socially optimal quantity? Also what is the socially optimal price?

Reference no: EM131198284

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