Question: Toaster Ovens Inc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology will significantly reduce the amount of
Toaster Ovens Inc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response to the market price, the quantity shown in the third column of the table below is supplied. If the firm were also to receive the broader social benefits of the new technology, the willingness to supply is shown in the fourth column.
tablePriceQty demanded,Qty supplied,tableQty supplied iffirm alsoreceives socialbenefits
If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be
$
$
$
$
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