The accompanying table shows the total revenue and the total cost that accrue to steel

Chapter 0, Problem 4

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The accompanying table shows the total revenue and the total cost that accrue to steel producers from producing steel. Producing a ton of steel imposes a marginal external cost of $60 per ton.a. Calculate the marginal revenue per ton of steel and the marginal cost per ton of steel to steel producers. Then calculate the marginal social cost per ton of steel. b.What is the market equilibrium quantity of steel production? c. What is the socially optimal quantity of steel production? d.What is the optimal Pigouvian tax to remedy the problem created by the negative externality?

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