Question
assume the demand curve for a good is perfectly inelastic and production of each unit of this good generates external costs. a profit-maximizing firm producing
assume the demand curve for a good is perfectly inelastic and production of each unit of this good generates external costs. a profit-maximizing firm producing the good is in an unregulated free market will
C: not generate deadweight loss because the equilibrium quantity is socially optimal
please explain
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Managerial Economics And Financial Analysis
Authors: M.S. Bhat, A.V. Rau
1st Edition
9352300211, 978-9352300211
