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6. Suppose that the inverse demand curve for paper is p = 200 - Q, the private marginal cost (unregulated competitive market supply) is MCp

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6. Suppose that the inverse demand curve for paper is p = 200 - Q, the private marginal cost (unregulated competitive market supply) is MCp = 80 + Q, and the marginal harm from gunk is MCg = Q. What is the unregulated competitive equilibrium? What is the social optimum? What specific tax (per unit of output or gunk) results in the social optimum? a. b

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