Business, 22.04.2020 00:36 KTgodlencorgi

Greater air pollution from car production leads to increased rates of asthma and infant mortality, imposing costs on the rest of society. The inverse demand for cars is given by the function P=100-5q while the private costs are given by the function P=20+5q. Additionally, we know that each car imposes a $10 per-unit external cost on society. What is the socially optimal number of cars produced?

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Greater air pollution from car production leads to increased rates of asthma and infant mortality, i...