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If a price of $40 is charged, a deadweight loss results because: the information in the report is not really worth $40. some consumers will
If a price of $40 is charged, a deadweight loss results because: the information in the report is not really worth $40. some consumers will pay the $40 even though they value the subscription less than the marginal cost of providing it. some consumers will not pay the $40 even though they would value the subscription more than the marginal cost of providing it. Consumer Reports has no incentive to control its costs
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