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Which answer(s) are correct and what is the reasoning? The following represents a version of the textbook's bananas- Weevokill-fishermen example - demand curve - -
Which answer(s) are correct and what is the reasoning?
The following represents a version of the textbook's bananas- Weevokill-fishermen example - demand curve - - private marginal cost -- - private marginal cost + external marginal cost - external marginal cost 160 155 150 145 140 135 130 125 120 110 105 100 95 90 . costs 8 75 20 demand curve 65 60 private marginal cost 40 35 30 25 20 10 external marginal cost 50 100 150 200 250 300 350 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200 Quantity of bananas (tons) Which of the following statements are correct? O a. Banning the production of bananas is efficient. O b. Starting from the profit-maximising level of output, collectively, plantation owners are willing to pay 16000 to prevent a law banning the production of bananas. O c. Starting from the profit-maximising level of output, collectively, fishermen are willing to pay 8000 to stop the production of bananas altogether. O d. Starting from the profit-maximising level of output, collectively, fishermen are willing to pay 20 to secure a reduction in output of 1 ton of bananasStep by Step Solution
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