題組內容

II. 簡答題 (共 10 分)
Lake Union has a polluting firm on its shore. For every toy that the firm produces, it creates some pollution to the lake. The market price for the toy is $100. The private costs of production and the external costs created by pollution are listed in the following table:

b. How many toys will the firm produce if the court rules that the firm is not liable for the pollution? Assume there is no negotiation between the firm and the residents.(2分)