Solved

The External Marginal Cost of Producing Coal Is MCexternal =

Question 34

Multiple Choice

The external marginal cost of producing coal is MCexternal = 8Q while the internal marginal cost is MC internal = 6Q.The inverse demand for coal is given by P = 180 − 4Q.If the government taxed output at $2 per unit,what would a competitive industry produce?


A) 10
B) 20
C) 15
D) 18

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q29: The domestic demand and supply for sugar

Q30: Consider the monopoly in the figure below

Q31: Suppose the external marginal cost of pollution

Q32: A lump-sum tariff is:<br>A) a fixed fee

Q33: Consider the monopoly in the figure below

Q35: Which of the following factors reduces the

Q36: Consider the monopoly in the figure below

Q37: Three years ago the CEO of a

Q38: Consider the monopoly in the figure below

Q39: Rent seeking:<br>A) involves resources paid to politicians