Description of this paper

Suppose that demand for a product is

Description

solution


Question

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-2015

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