# [Solved] The Following Table Shows the Marginal Private Cost (MPC)and the Marginal

Question 123
Essay
Question 123

## The following table shows the marginal private cost (MPC)and the marginal social cost (MSC)of a chemical factory. Answer the following questions:(1)What is the marginal cost of the factory's externality? Is it constant at all quantities?(2)If the factory is a perfectly competitive firm and is not required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is $130?(3)If the factory is a perfectly competitive firm and is required by the government to internalize its external cost,how many tons should the factory produce,given that the market price of a ton of chemicals is$130?(4)Draw a graph illustrating your answers.

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