The demand for a product is given by Q = 120 - P, where quantity is measured in pounds. The market supply is given by MC = 10. The production of this product causes toxins to be emitted into the air. The marginal external damage of this product is $2 per unit. 

What is the socially efficient production of the good?

Answer rating: 100% (QA)

b 2 At equilibrium marginal revenue is equal to marginal cost Therefore P MR MC ... View the full answer