Question: The inverse demand function for a good is P = 150 - 2Q, and the inverse supply curve is 15 + Q. Production of the

The inverse demand function for a good is P = 150 - 2Q, and the inverse supply curve is 15 + Q. Production of the good creates a positive externality of 9 per unit produced.

Left alone, how much will the market produce?

What is the socially optimal amount of production?

A subsidy of how much per unit could get this market to the socially optimal outcome?

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