Refer to A Negative Externality Problem. The equation for social marginal cost is
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation.
a. MCS = 10 + Q
b. MCS = Q
c. MCS = 20 + Q
d. MCS = 10 + 10Q
c. MCS = 20 + Q
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