class 13-2 post - Class 13 Externalities Open Access and...

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Class 13 Externalities Open Access and Public Externalities, Open Access, and Public Goods
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Last Class Entry and Exit Welfare Measures Competition maximizes Welfare Application Ta es and Q otas Application: Taxes and Quotas
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Outline Externalities Public Goods General Equilibrium: Preview
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Externalities: Pollution from Paper Production Price of paper $ t : Welfare from producing Q tons 450 $ per ton Loss from too much polution ( ) ( ) ( ) ( ) 0 Q D S W Q p q MC q dq = MC s =MC p + MC g MC p e s MC e c 240 282 198 MC g 0 30 48 Q Tons of 225 Q s =84 Q c =105 , Tons of paper per day
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