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Market for steel is competitive. Demand for steel is given by Q = 60 -P/2 (i.e.marginal benefit is MB = 120 - 2Q). Private marginal
Market for steel is competitive. Demand for steel is given by Q = 60 -P/2 (i.e.marginal benefit is MB = 120 - 2Q). Private marginal cost of steel production is MC= Q. Marginal damage caused to the society from steel production is MD = 2Q. What is the social cost (i.e. the deadweight loss) of steel production in thecompetitive equilibrium?
The asnwer is 640, how do I derive that
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