Problem
Suppose that the total cost curve of the steel industry is given by: TC=100+100+SQ"2. Industry demand can be expressed as: P=100- 200 In addition to the steel products produced by the firms, the industry also generates a signigicant amount of pollution. The uncompensated demage to communities surrounding various steel plants can be written as: TCpollution=10Q+SOA2. Given this information, answer the following questions:
i. If the insustry is competitive and pollution is not taken into account, what is the quantity of steel produced?
ii. lfthe industry is cometitve and pollution is not taken into account, what is the price of steel?