Mathematics · Environmental Economics Calculations
A factory emits pollution. The Marginal Private Cost (MPC) = 20 + 2Q, the Marginal External Cost (MEC) = 10, and the Marginal Benefit (MB) = 100 − 2Q. What is the socially optimal level of output (Q)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Q = 22.5
- 2Q = 15
- 3Q = 20
- 4Q = 17.5✓
Correct answer
Q = 17.5
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