In the absence of environmental policy, the number of tires produced in a competitive market is
Use thefollowing information for any or all of Questions 16 through 18.
Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions:
MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q
a. 20 million c. 4 million
b. 25 million d. none of the above
b. 25 million
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