Consider the following model for the production of refined oil: MSC = 10+0.5Q, MEC = 0.3Q, MSB

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Consider the following model for the production of refined oil:

MSC = 10+0.5Q, MEC = 0.3Q, MSB = 30-0.3Q, MEB = 0

a. Based on the model, what are the price and quantity at the efficient equilibrium?

b. What is the firm's marginal profit at the efficient equilibrium quantity?

c. What is the firm's marginal profit at the competitive equilibrium quantity?

Related Book For answer-question

Applied Regression Analysis and Other Multivariable Methods

ISBN: 978-1285051086

5th edition

Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg

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Posted Date: Mar 01, 2024 10:41 PM

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Consider the following model for the production of refined oil: MSC = 10+0.5Q, MEC = 0.3Q, MSB

Question:

Expert Answer:

a To find the efficient equilibrium we need to equate the marginal social cost MSC to the marginal s... View the full answer

Applied Regression Analysis and Other Multivariable Methods

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