$/cost 800- MDC (Globe) Moc (Anvil) 40 *MDC (Globe)=-20+12e * MDC (Anvil) = -40+10e MAC (Anvil) = 750-2.3e MAC (A) 60 emissions

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter8: Production And Costs
Section8.4: Costs Of Production: Total, Average, Marginal
Problem 1ST
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B. using the diagram, determine the magnitude of the local market failure and the global market failure 
C. suppose that the anvilianian government has given production subsidies to the firms in anviliania. as a result, the firms  have increased production ( and the number of firms have increased). consequently, the aggregate MAC is now  MAC (anvil) = 800 -2.3e  -- determine the magnitude of the intervention failure 

$/cost
800-
MDC (Globe)
Moc (Anvil)
40
*MDC (Globe)=-20+12e
* MDC (Anvil) = -40+10e
MAC (Anvil) = 750-2.3e
MAC (A)
60
emissions
Transcribed Image Text:$/cost 800- MDC (Globe) Moc (Anvil) 40 *MDC (Globe)=-20+12e * MDC (Anvil) = -40+10e MAC (Anvil) = 750-2.3e MAC (A) 60 emissions
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