Suppose that demand for a product is Q = 1,200 ? 4P and supply is Q = ?200 + 2P.;Furthermore, suppose that the marginal external damage of this product is $8 per;unit. How many more units of this product will the free market produce than is socially;optimal? Calculate the deadweight loss associated with the externality.
Paper#28515 | Written in 18-Jul-2015Price : $22