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Que Cp (Q) = 1 Q² Ce(Q) Q² a) MCE ƏCE(Q2 = 20 AQ b) Mcs=? > Total cost to society Tes is equal to private TCs (Q) = "Cp (Q) + Ca(Q) 1Q² + Q² 30 costs + external costs. 2 2 Scanned by TapScanner
MCF(Q.) - d TC(Q) = do (20) -3R 2 Sep social optimum occurs where MCs = MR. 2 Q = 18-P P= 18-Q TR P.
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Q = 18Q- Q MR = ATR = 18-20 dell MR= MCG 18-2Q = 30 18 58. Q = 1815 3-6 social optimal quantity. Ps. = 18 Q & 2 18 - 18 - 90-18 5 72 S Ps² = 7215 d competitive market Equilibrium P = MCp 18-Q = Q 28= 20 P= 18-Q=9 Pc = 9 So, we can conclude that social oplinal quantity is less than competitive equilibrium quanlity (13-6<9) Scanned by TapScanner
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