he external marginal cost of producing electricity is MCexternal = 6Q while the internal marginal cost is MCinternal = 4Q. The inverse demand for electricity is given by P = 120 - 2Q
Using the given information: How much output would a competitive industry produce, and how much output would a monopoly produce?
I) 12; 20
II)15; 8
III)15; 10
IV)20; 15
V)25; 10