Re: Isi 2017 PEB

Posted by kanv93 on May 11, 2018; 10:45am
URL: http://discussion-forum.276.s1.nabble.com/Isi-2017-PEB-tp7609125p7609131.html

How do we solve the sequel question ?

Suppose the government
decides to impose a per unit pollution fee on OIL Inc. At
what level should the fee (in Rs./unit) be set to produce
the level of output that maximizes social surplus? You
may use the fact that the marginal revenue is given by:
MR = 75 − 2Q