Figure: Positive Externalities and the Production of Semiconductor Chips (Figure: Positive Externalities and the Production of Semiconductor Chips) Look at the figure Positive Externalities and the Production of Semiconductor Chips.If the marginal external cost of producing a chip is $20, then the socially optimal quantity of chips is ________ and the socially optimal price is _.
A)200; $20
B)300; $35
C)500; $25
D)600; $40

Question

Figure: Positive Externalities and the Production of Semiconductor Chips   (Figure: Positive Externalities and the Production of Semiconductor Chips) Look at the figure Positive Externalities and the Production of Semiconductor Chips.If the marginal external cost of producing a chip is $20, then the socially optimal quantity of chips is ________ and the socially optimal price is _.
A)200; $20 
B)300; $35 
C)500; $25 
D)600; $40

Quizplus · Accepted Answer

The Answer of Figure: Positive Externalities and the Production of Semiconductor Chips   (Figure: Positive Externalities and the Production of Semiconductor Chips) Look at the figure Positive Externalities and the Production of Semiconductor Chips.If the marginal external cost of producing a chip is $20, then the socially optimal quantity of chips is ________ and the socially optimal price is _.
A)200; $20 
B)300; $35 
C)500; $25 
D)600; $40