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Q 5 ( 2 0 points ) Suppose that the inverse market demand curve for cloth is p = 1 5 0 - 2 Q
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Suppose that the inverse market demand curve for cloth is the private marginal cost unregulated competitive market supply is and the private marginal damage from pollution is
a points What is the unregulated competitive equilibrium quantity and price?
b points What is the social marginal cost of production and social equilibrium quantity and price?
c points What specific tax per unit would result in the social optimum?
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