The Following Table Shows the Marginal Private Cost (MPC)and the Marginal

question 89

Essay

The following table shows the marginal private cost (MPC)and the marginal social cost (MSC)of a chemical factory.
Answer the following questions:
(1)What is the marginal cost of the factory's externality? Is it constant at all quantities?
(2)If the factory is a perfectly competitive firm and is not required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is $130?
(3)If the factory is a perfectly competitive firm and is required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is $130?
(4)Draw a graph illustrating your answers.

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Definitions:

Disclose

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Going against the norm of expectations of society while initiating behaviors that are considered to be out of norm or against social, personal, and professional expectations; going off script on social media without permission and not in an official capacity.

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A movement started by activists and environmentalists to safeguard national parks and environmental policies, often utilizing social media for advocacy and information dissemination.

Social Media Policy

Guidelines issued by an organization for its employees and other stakeholders on how to behave on social media platforms.