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jeka57 [31]
3 years ago
10

You are an industry You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 - 5Q.

The external marginal cost of producing the product is MCExternal = 10Q, and the internal cost is MCInternal = 16Q." that specializes in an industry where the market inverse demand is P = 200 - 5Q. The external marginal cost of producing the product is "
Business
1 answer:
shepuryov [24]3 years ago
7 0

Answer:

An internal marginal cost is the extra cost of producing one more unit of output.

An internal marginal cost is the extra cost to society after one more unit of output is produced. It is also known as externality.

And the social marginal cost is the sum of internal and external marginal costs.

For this question:

The external marginal cost of producing the product is $10Q, which is given by the question.

And the social marginal cost is:

MCSocial = MCexternal + MCinternal

MCSocial = 10Q + 16Q

MCSocial = 26Q

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Answer:

E:  a debt of $10.7 trillion and a deficit of zero.

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Deficits are usually financed by debt. Here the government has incurred an extra debt of $700 billion. The previous debt of $10 trillion may have been due to any reason and not necessarily deficit. However, the passage does not state if the extra debt is due to deficit or not. So it is safe to select option E.

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According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is
dimaraw [331]

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