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Consider the following model of MSW services for the city of Tallahassee, FL: MSC = 2 + Q MSB = 25 - 2.5Q MEC =
Consider the following model of MSW services for the city of Tallahassee, FL: MSC = 2 + Q MSB = 25 - 2.5Q MEC = 0.4Q MEB = 0 where MSC denotes marginal social cost, MSB denotes marginal social benefit, MEC denotes marginal external cost, and MEB denotes marginal external benefit. a) What is the allocationy efficient price and quantity in this MSW market? b) What is the market equilibrium price and quantity in this market? c) Assuming that Tallahassee uses a flat fee pricing system and charges $15 for trash services, solve for the equilibrium quantity of MSW services. Show your work and include your response in an upload
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