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Business, 27.12.2020 15:30 gunaranjan09

Suppose a factory emits pollution into the air during its production process. The demand (D) for its output (Q) is p= 2400- Q, its marginal cost of production (MC) is MC= 0.8Q, and the social marginal cost of production () isMC'= 1Q. If the government were to achieve the social optimum amount of production with an emissions fee, then what would be the optimal fee? The optimal fee would be $ nothing per unit of output. (Enter a numeric response using a real number rounded to two decimal places.)

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