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The External Marginal Cost of Producing Coal Is MCexternal =

Question 47

Multiple Choice

The external marginal cost of producing coal is MCexternal = 6Q while the internal marginal cost is MCinternal = 4Q.The inverse demand for coal is given by P = 120 − 2Q.What is the socially efficient level of output?


A) 10
B) 20
C) 15
D) 8

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