Using the numerical example in Appendix 18A, determine the social optimum if the marginal harm of gunk

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Using the numerical example in Appendix 18A, determine the social optimum if the marginal harm of gunk is MC^g = $84 (instead of Equation 18A.3). Can you think of a shortcut that would allow you to solve this problem without algebra?

Appexdix 18A

p = a - bQ,

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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Question Posted: Nov 12, 2018 07:17 AM

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Using the numerical example in Appendix 18A, determine the social optimum if the marginal harm of gunk

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Use the model in Appendix 18A to determine the equilibrium i...View the full answer

Microeconomics

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