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In a market with a positive externality, suppose that at market equilibrium, the marginal private benefit is $21 and the marginal social benefit is $48.
In a market with a positive externality, suppose that at market equilibrium, the marginal private benefit is $21 and the marginal social benefit is $48. The market equilibrium is at a quantity of 16 and the efficient quantity is 21. What is the value of the deadweight loss resulting from the underproduction of this good? Do not include the $ in your
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Managerial Economics And Strategy
Authors: Jeffrey M. Perloff, James A. Brander
3rd Edition
0134899709, 978-0134899701
