Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 14, Problem 5SQ

The perfectly competitive profit-maximizing firm in Exhibit 6 creates water and air pollution as a consequence of producing its output of pigs. If pollution costs are borne by third parties, the firm will maximize economic profit by choosing to

  1. a. voluntarily incur costs to reduce its pollution.
  2. b. produce at output rate Q3.
  3. c. produce at output rate Q2.
  4. d. produce at output rate Q4.

EXHIBIT 6 Private and Social Cost

Chapter 14, Problem 5SQ, The perfectly competitive profit-maximizing firm in Exhibit 6 creates water and air pollution as a

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