Encouraging Positive Production Externalities

Quantity (Q) Price / Cost ($) Pm 50 (Qm) MPB = MSB MPC
Subsidy / External Benefit Amount $0.00
Potential Welfare Gain (DWL) $0.00
Calculation Formula: ½ × Base × Height
½ × $0.00 × (50 - 50) = $0.00
Market Price (Pm) 50
Social Price (Popt) -
Market Quantity (Qm) 50
Social Quantity (Qopt) -