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Please refer to the following question: 06 {3 marks]. The market for paper in Doterio has the supply.r and demand curves as follows Q: =

Please refer to the following question:

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06 {3 marks]. The market for paper in Doterio has the supply.r and demand curves as follows\" Q: = 100.000 20000;: 9; = 40.000 + 2.000p. where Q is measured in hundredopound lots, and p is price per hundred-pound lot. Wimut the regulation against dumping of pollutants into rivers by the paper mills, dumping is widespread. The marginal external cost associated with the paper production is Mg; = 0.00029. Compare the competitive equilibrium with the socially optimal equilibrium and calculate the deadweight lees

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