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Unformatted text preview: Round your quantity to the nearest whole number. Show your work and indicate your equilibrium values on the graph above. (c) Find the socially optimal level of paper and the corresponding price. Round your quantity to the nearest whole number. Show your work and indicate your socially efficient values for price and quantity on the graph above. (d) How much should the paper factory be taxed per unit of output? Show your work. Show this on vertical distance on your graph (you could be off slightly due to rounding). (e) What is the amount of tax revenue generated? Show your work and show this area on your graph showing your numbers. f) What is the value of the net gain to society from implementing the tax ($). Show this area on your graph....
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- Spring '10