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Following the prompt and equations given above, plot a figure that graphs the following lines: Marginal cost (MC) Private Marginal Benefit (MBp) Social Marginal Benefit
Following the prompt and equations given above, plot a figure that graphs the following lines:
- Marginal cost (MC)
- Private Marginal Benefit (MBp)
- Social Marginal Benefit (MBs)
Also indicate and label the following areas (assuming the competitive equilibrium prevails):
- Private consumer surplus, i.e., not including external benefits (CS)
- External benefits (EB)
- Producer surplus (PS)
- Deadweight loss from competitive equilibrium (DWL)
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