Consider a Competitive Market in Which the MPB = 180

question 2

Multiple Choice

Consider a competitive market in which the MPB = 180 - 2q and the MSC = q.In this market, however, there is a positive consumption externality of $60 per unit consumed.What is the efficient level of output in this market?

• A)60
• B)70
• C)80
• D)90
• E)100

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Green Or Blue Ink

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Numerical Amount

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