The inverse market demand curve for a certain commodity is p = 85 – 10Q, and costs to a single firm of producing it are C(q) = 120 + 25q.
The inverse market demand curve for a certain commodity is p = 85
– 10Q, and costs to a single firm of producing it are C(q) = 120 + 25q.
-(i) Show that it is socially desirable that a certain quantity of the commodity is produced, but that no firm is willing to provide it.
-(ii) How might the government insure that the socially optimal level of output is provided?
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The post The inverse market demand curve for a certain commodity is p = 85 – 10Q, and costs to a single firm of producing it are C(q) = 120 + 25q. appeared first on Superb Professors.
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