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2 c. (7 points) Determine the dollar value of the product charge (e.g. Pigouvian tax) that would ensure a socially efficient competitive equilibrium. Explain your
2 c. (7 points) Determine the dollar value of the product charge (e.g. Pigouvian tax) that would ensure a socially efficient competitive equilibrium. Explain your method and draw a graph. the p the follows1. (15 points, as indicated) Pigouvian Tax. Assume that the U.S. market for some inorganic chemical is modeled as follows, where 2 is in thousands of kilograms, P is price per kilogram, and there are no consumption externalities: MSB = 90 - 0.50 MSC = 30 + 0.30 MEC = 0.20 a. (4 points) Find the competitive equilibrium outcome. b. (4 points) Find the socially efficient (allocationy efficient) equilibrium outcome
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