{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


Her supply curve is given by mc p q where q is the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: . Her supply curve is given by MC = P = Q, where Q is the quantity supplied (in bushels) and P is the price. The market price is $24 per bushel. Unbeknownst to Erica, her neighborhood reeks of garlic due to her garden. Her neighbors are pleasant Milwaukeean’s and don't complain, though they suffer as a result of her garden. The marginal external costs are constant: MEC = 4. A) How much does Erica harvest in equilibrium? P = 24 = Q S B) What is the Social Marginal Cost curve? (give the equation) SMC = 4 + QS C) What is the socially-optimal amount of garlic produced by Er...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online