please give me process about these questions uestions 3 to 9 1. The private marg

Question

please give me process about these questions

uestions 3 to 9 1. The private marginal benefit (PMB) for widgets is 100-6X 2. The private marginal cost (PMC) of producing X is 4X 3. The external marginal damage (MD) of each widget produced is $10 3. The profit-maximizing output of widgets is b. 6 c. 8 d. 10 4.The socially efficient output of X is a. 3 units b. 5 c. 9 d. 10 5. The private cost of producing the 3d widget is a. $12 b. 18 C. d. 23 6. The social cost of producing the 4th widget is 21P a ge neClass find more resources at oneclass.com neClass find more resources at oneclass.com Pink Assignment a. $12 b. 14 c. 22 d. 26 7. The social (private) benefit (SMB-PMB) from consuming the 5h widget is a. $40 b. 50 ?. 70 d. 90 8. The net social benefit from the consumption of the 6th widget is a. $30 b. 34 c. 64 d. 66 9.The "green tax" required to reach a socially efficient level of widgets (from the private market output) is a. S2 b. 6 c. 8 d. 10

Explanation / Answer

Question 3

Private marginal benefit (PMB) = 100 - 6X

Private marginal cost (PMC) = 4X

Profit-maximizing level of output is that level of output corresponding to which PMB equals PMC.

Equating PMB and PMC

100 - 6X = 4X

10X = 100

X = 100/10 = 10

The profit-maximizing output of widgets is 10 units.

Hence, the correct answer is the option (d).

Question 4

PMB = 100 - 6X

PMC = 4X

External marginal damage (MD) = 10

Social marginal cost (SMC) = PMC + MD = 4X + 10

Socially efficient level of output is that level of output corresponding to which PMB equals SMC

Equating PMB and SMC

100 - 6X = 4X + 10

10X = 90

X = 90/10 = 9

The socially efficient output of X is 9 units.

Hence, the correct answer is the option (c).

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