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  3. k drop down options for line 1 15 2 25...

Question: k drop down options for line 1 15 2 25...

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Attempts Average: 73 3. The effect of negative externalities on the optimal quantityof consumption Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional ton of steel imposes a constant external cost of $330 per ton. The following graph shows the demand (private value) curve and the supply (private cost) curve for steel Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $330 per ton. 1100 Social Cost 770 Supply Private Cost) 440 330 Private Value) 110 5k1100 Social Cost 880 770 660 Supply Private Cost) 550 440 Demand Private Value) 330 220 110 QUANTITY (Tons of steel) The market equilibrium quantity is ▼ tons of steel, but the socially optimal quantity of steel production is ▼ tons. To create an incentive for the firm to produce the socially optimal quantity of steel, the government could impose a ▼of per ton of steel Grade It Now Save & Continue Continue without saving

Drop down options for line 1: 1.5, 2, 2.5, 3, 3.5, 4, 4.5, 5, 5.5

Drop down options for line 2: Subsidy/Tax

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