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a. In an unregulated market, what would be the equilibrium price and quantity? b. At the unregulated equilibrium, what is the value of external benefits
a. In an unregulated market, what would be the equilibrium price and quantity? b. At the unregulated equilibrium, what is the value of external benefits per tonne? What is the value of external costs per tonne? Value of external benefits: 33 C] Value of external costs: $ C] c. At the unregulated equilibrium, what is the value of total external benefits? What is the value of total external costs? Total external benefits: $ C] Total external costs: $ C] d. What are the most desirable price and quantity from society's point of view? The graph below illustrates the market for Solarium, a product that has both extensive social benefits and extensive social costs. MPC MSC 1350 MSB 1200 1050 900 750 Price 600 450 300 150 6 12 '18 24 30 36 42 Quantity of output (millions of tonnes)
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