題組內容

III. Short Answer Questions (簡答題)(50%)
1. (15%)Suppose that the inverse market demand curve for cloth is P = 150 2Q, the private marginal cost (unregulated competitive market supply) is $MC^p = 75 + Q$, and the marginal damage from pollution is $MC^d = 2Q$.

a. What is the unregulated competitive equilibrium quantity and price?