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Consider a competitive market with a MSB = 50-2q and a MPC = 7 + 4q. There is a negative production externality of e =
Consider a competitive market with a MSB = 50-2q and a MPC = 7 + 4q. There is a negative production externality of e = 3q, where q is the level of output in the market. What is the DWL that results in the market equilibrium
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
9th Edition
978-0132146654, 0132146657, 9780273754091, 978-0273754206
