6- A number of competing bakeries in a trendy downtown neighborhood produce fresh cookies. The demand for cookies in that neighborhood is=160.25

P=160.25Q, whereQis the dozens of cookies baked each day. The industry marginal cost for these competing bakeries is=2+0.25

MC=2+0.25Q.

a.Solve for the equilibrium quantity and price of cookies in the neighborhood.

Q= _________________

P = _________________

b.Who doesn't love the smell of fresh-baked cookies? Downtown residents and passersby receive $2 worth of benefit from every dozen of cookies baked. Solve for the socially ideal quantity and price (social demand) of cookies in the neighborhood.

Q= ____________________

SD= __________________

You can conclude that bakers are producing___________________ cookies than is socially desirable and that cookies are ________________.