Question: Please do all these three The private marginal benefit associated with Lil Yachty albums is PMB = 360-4Q. The private marginal cost of manufacturing vuvuzelas

Please do all these three

The private marginal benefit associated with Lil Yachty albums is PMB = 360-4Q. The private marginal cost of manufacturing vuvuzelas is PMC = 6Q. Lil Yachty albums make everyone in a close vicinity unhappy. The marginal damage is 20 per play of the album. (a) If there were no externality what would be the optimal Q? (b) What is the actual optimal Q? Explain very briefly how it makes sense that your number is SMALLER than the one you got in (a). (c) What is the optimal tax to correct for the damage? (Hint: at the optimal Q how much marginal damage does each Yachty album cause?) The private marginal benefit associated with Lil Yachty albums is PMB = 360-4Q. The private marginal cost of manufacturing vuvuzelas is PMC = 6Q. Lil Yachty albums make everyone in a close vicinity unhappy. The marginal damage is 20 per play of the album. (a) If there were no externality what would be the optimal Q? (b) What is the actual optimal Q? Explain very briefly how it makes sense that your number is SMALLER than the one you got in (a). (c) What is the optimal tax to correct for the damage? (Hint: at the optimal Q how much marginal damage does each Yachty album cause?)

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