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QUESTIONS 6A to 6C Questions 6A to 6C are based on the table below, which describes the profit of a plastic producing firm, and the

QUESTIONS 6A to 6C Questions 6A to 6C are based on the table below, which describes the profit of a plastic producing firm, and the external cost it imposes on a restaurant nearby who suffer from the air pollution.

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Units of Marginal Marginal Marginal Plastic Profit External Cost Social Profit Produced (MR-MC) (on restaurant) (MSB-MSC) 45 6 39 2 33 16 17 20 16 4 4 10 28 -18 -1 32 -33

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