Question: Bakshi problem 4 . 5 ( modified ) : In a free market, the marginal cost ( M ) of a commodity in $ k
Bakshi problem modified: In a free market, the marginal cost of a commodity in may be modeled as where is the quantity produced in kilograms. The demand for this commodity is related to its price as Answer the following questions,
a Determine the equilibrium point for this market.
b If an environmental tax of $ is imposed on this system, what is the new equilibrium point?
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