Assume that the market for sriracha sauce can be

Question

Assume that the market for sriracha sauce can be represented by the following supply and demand equations:

P=Q^s/10

P=10-Q^D/10

The production of each bottle of sriracha sauce creates an external cost of $3 so that the Marginal Social Cost of sriracha production is given by

P=3 + Q^s/10

Find the socially optimal output in this market.