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The supply and demand conditions facing a rm that makes refrigerators and generates a negative externality by dumping a highly toxic deposits into a nearby
The supply and demand conditions facing a rm that makes refrigerators and generates a negative externality by dumping a highly toxic deposits into a nearby river is given in the table below. The equilibrium price and quantity when private costs and social costs are taken into account are _____ & _____ respectfully. Price 100 80 65 55 3O 20 0 Price = $65, Quantity = 40 0 Price = $30, Quantity = 20 0 Price = $40, Quantity = 55 0 Price = $55, Quantity = 30 10 4o 55 80 100 lnternalizing A Negative Externality Quantity Demanded Quantity Supplied without 120 100 90 85 80 65 Paying Social Costs Quantity Supplied after Paying Social Costs 75 50 4o 30 20 15
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