The production process of Boston Chemical Company is associated with a negative externality. Below are marginal costs and benefits: MSC = 60 + 0.4 Q MPC = 60 + 0.2 Q MSB = MPB = 120 - 0.2 Q 2.1 What is the MEC function? 2.2 What is the efficient output level? 2.3 What is the amount of Pigouvian tax?

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To determine the MEC Marginal External Cost function we need to calculate the difference betwee... View the full answer