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In the market for dry cleaning, the demand function is P=100-Q, and MC=10+Q gives the (private) marginal cost of production. The pollution generated by the
In the market for dry cleaning, the demand function is P=100-Q, and MC=10+Q gives the (private) marginal cost of production. The pollution generated by the dry cleaning process creates external damage, and the marginal external cost is MEC=Q. Find out the socially efficient amount and price and their variations from the market efficient values.
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