1. We have the following inverse demand function: P(q) = 50 – 5q And the following cost function for a firm: C(q) = 5q+q

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1 We Have The Following Inverse Demand Function P Q 50 5q And The Following Cost Function For A Firm C Q 5q Q 1 (87.6 KiB) Viewed 15 times

1. We have the following inverse demand function: P(q) = 50 – 5q And the following cost function for a firm: C(q) = 5q+q² And the good produces an externality. The marginal damage of the good is: MD(q) = 5 Graph the MB, MC, MSC and Deadweight loss and calculate the size of the deadweight loss. Note for this question ensure the formulas are in the right form. i.e. does MB-the demand curve or the inverse demand curve