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f. What is the Deadweight Loss (DWL), if any in this market? Why does it occur? g. Assuming that you have numbers associated with all
f. What is the Deadweight Loss (DWL), if any in this market? Why does it occur? g. Assuming that you have numbers associated with all the variables showed on the graph below (e.g. W2=$5, L3=800 and so on), would you have all the required information needed to compute the DWL? If not, what assumptions would you make to find the missing information? Wage ($/labor) Supply of labor Demand of labor Wo L2 + L L3 (units of labor) f. What is the Deadweight Loss (DWL), if any in this market? Why does it occur? g. Assuming that you have numbers associated with all the variables showed on the graph below (e.g. W2=$5, L3=800 and so on), would you have all the required information needed to compute the DWL? If not, what assumptions would you make to find the missing information? Wage ($/labor) Supply of labor Demand of labor Wo L2 + L L3 (units of labor)
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