The EPA determined the presence of a public health and ecological damage externality cost in dollars of MEC-0.020 associated with Q units of nitrogen oxides output of a chemical process per month.There was no evidence of external benefit. The marginal social benefit was estimated as MSB-50-0.4Q and the marginal social cost as MSC-2+ 0.40 What is the competitive solution? What is the socially conscious solution? If you start with the competitive solution (Q=?) and you want to assess a Pigouvian tax equal to the externality, how much would that tax be?

The EPA determined the presence of a public health and ecological damage externality cost in dollars of MEC-0.020 associated with Q units of nitrogen oxides output of a chemical process per month.There was no evidence of external benefit. The marginal social benefit was estimated as MSB-50-0.4Q and the marginal social cost as MSC-2+ 0.40 What is the competitive solution? What is the socially conscious solution? If you start with the competitive solution (Q=?) and you want to assess a Pigouvian tax equal to the externality, how much would that tax be?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 17SQ

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