Question: The table below shows the supply and demand for the output of a firm which creates pollution. The third column shows the supply schedule for
The table below shows the supply and demand for the output ofa firm which creates pollution.The third column shows the supply schedule for the firm without paying the costs of pollution. The last column represents the supply curve when the firm also paysthe social costs of pollution. What is the equilibrium quantity produced when the firm is paying only the private costs of production?
Supply and Demand for a Firm Which Generates Pollution
PriceQuantity DemandedQuantity Supplied without paying
the costs of the externalityQuantity Supplied after paying
the costs of the externality$$$$$$
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