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Draw a generic marginal private benefit and marginal private cost curve for the recreational center and show the market equilibrium price and quantity, labeled P

  1. Draw a generic marginal private benefit and marginal private cost curve for the recreational center and show the market equilibrium price and quantity, labeled Pe and Qe.
  1. On your graph in part (a), show the marginal social cost, labeled MSC.
  1. Assuming no other externalities, identify the marginal social benefit, labeled MSB.
  1. If deadweight loss exists, shade the area in completely.

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