Suppose the supply curve of boom box rentals in Golden Gate Park is given by P 5

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Suppose the supply curve of boom box rentals in Golden Gate Park is given by P 5 0.1Q, where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for boom boxes is 20  0.2Q. If each boom box imposes $3 per day in noise costs on others, by how much will the equilibrium number of boom boxes rented exceed the socially optimal number? LO1

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Principles Of Microeconomics

ISBN: 9780073362663

4th Edition

Authors: Robert H. Frank, Ben S. Bernanke

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