Michigan SUGAR BEET processing center creates waste ponds that smell terrible interfering with the quality of life of nearby residents. Below are the dollar valued benefits and costs of producing a ton of sugar.Quantity inTonsPrivateBenefitPrivate CostExternal Cost1$140$100$202$130$110$203$120$120$204$110$130$205$100$140$206$90$150$207$80$160$20Describe the quantity of tons of Sugar that would be produced in a pureDescribe the society optimal quantity tons of sugar that should beDescribe two ways that the business can be incentivized to internalize the socialcosts of sugar

Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms.…

Answered: Michigan SUGAR BEET processing center…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Michigan SUGAR BEET processing center creates waste ponds that smell terrible interfering with the quality of life of nearby residents. Below are the dollar valued benefits and costs of producing a ton of sugar.

Quantity in Tons	Private Benefit	Private Cost	External Cost
1	$140	$100	$20
2	$130	$110	$20
3	$120	$120	$20
4	$110	$130	$20
5	$100	$140	$20
6	$90	$150	$20
7	$80	$160	$20

Describe the quantity of tons of Sugar that would be produced in a pure
Describe the society optimal quantity tons of sugar that should be
Describe two ways that the business can be incentivized to internalize the socialcosts of sugar

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