Only typed answer 43.8037.6026.7522.5018.6000a$1.90$4.25$8.15$37.60b3,840C5,520 6,360(Marginal Social Costs)= (Marginal Private Costs)Marginal Social BenefitsMarginal Private BenefitsquantityIn this market, in order to achieve the socially best quantity, then a per-unit subsidyshould be granted to producer equal to the value of the external benefit, which is

External benefit is the benefit experienced by society due to the action of others. Suppose the…

Answered: In this market, in order to achieve the…

In this market, in order to achieve the socially best quantity, then a per-unit subsidy should be granted to producer equal to the value of the external benefit, which is $1.90 $4.25 $8.15

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 40P: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in...

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Question

Only typed answer

43.80
37.60
26.75
22.50
18.60
0
0
a
$1.90
$4.25
$8.15
$37.60
b
3,840
C
5,520 6,360
(Marginal Social Costs)
= (Marginal Private Costs)
Marginal Social Benefits
Marginal Private Benefits
quantity
In this market, in order to achieve the socially best quantity, then a per-unit subsidy
should be granted to producer equal to the value of the external benefit, which is

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