question archive Suppose MB=100-20, MPC=40+20, and the MD=2Q
Suppose MB=100-20, MPC=40+20, and the MD=2Q
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Suppose MB=100-20, MPC=40+20, and the MD=2Q. (Hint: MB: Marginal Benefit, MPC: Marginal private cost, MD: Marginal Damage) Calculate the actual production (3 Points) 60 15 o 4 44 o None of Above
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The correct answer is option 2
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The actual production is found at the intersection of Marginal benefit (MB) and Marginal private cost (MPC)
100 - 2Q = 40 + 2Q
60 = 4Q
Q = 15 units
The actual production = 15 units.
