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pixiedust7891 pixiedust7891
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A year ago
The graph shows the marginal cost (MC), the marginal social cost (MSC), and the marginal benefit (MB) of producing paper at a paper mill.
 
Assume that P1=$149, P2=$293, P3=$332, P4=$476, Q1=14,500 and Q2=42,500. The graph illustrates a ________ (negative/positive) externality. The government can achieve economic efficiency by imposing a ________ (subsidy/tax) equal to ________.

▸ negative, tax, $183

▸ positive, tax, $327

▸ positive, subsidy, $183

▸ negative, subsidy, $327
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Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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sagitario81sagitario81
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