Question
A firm chooses to produce at a quantity where MR=MC. The product that thisfirm produces creates a negative externality. Under which of the following conditions
A firm chooses to produce at a quantity where MR=MC. The product that thisfirm produces creates a negative externality. Under which of the following conditions could this be a profit maximizing outcome and efficient output level?
- If the firm perfectly price discriminates.
- If it is in a perfectly competitive industry.
- If the firm is a single price monopoly.
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
