SECTION Answer the questions under this section QUESTION ONE tolong plant that emits colmonoxide into an environment inhabited by a large but got the Margit Private Menelit (MPB) and Marginal Private Cost (MPC) of The pintu given by MPB = 200 20 MPG = 100 + 20 en sure that the equntion for the Marginal Damage (MD) to the residents in the City is given by: MD 120 MD is the marginal external cost to society other than the direct producers. calculate the output and price if it is produced under competitive conditions. (2 marks) 5. Demine the socially efficient price and output. (3 marks) Fa corrective tax were imposed, how much tax per unit should be exacted to compell the Cordpeitive marked to produce the efficient output? Illustrate your answer with appropriate en on a graph shieet. (11 marks) d Compute the deadweight loss resulting from the actions in c above. (2 marks) Why should pollution emitted by this power plant be a problem in a market economy. (2 marks) [20 MARKS] Unversity of Professional Studies, Acon P.O. Box LG 149. Aces raduate Library SECTION Answer the questions under this section QUESTION ONE tolong plant that emits colmonoxide into an environment inhabited by a large but got the Margit Private Menelit (MPB) and Marginal Private Cost (MPC) of The pintu given by MPB = 200 20 MPG = 100 + 20 en sure that the equntion for the Marginal Damage (MD) to the residents in the City is given by: MD 120 MD is the marginal external cost to society other than the direct producers. calculate the output and price if it is produced under competitive conditions. (2 marks) 5. Demine the socially efficient price and output. (3 marks) Fa corrective tax were imposed, how much tax per unit should be exacted to compell the Cordpeitive marked to produce the efficient output? Illustrate your answer with appropriate en on a graph shieet. (11 marks) d Compute the deadweight loss resulting from the actions in c above. (2 marks) Why should pollution emitted by this power plant be a problem in a market economy. (2 marks) [20 MARKS] Unversity of Professional Studies, Acon P.O. Box LG 149. Aces raduate Library