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Show that decreasing output below the competitive level decreases total surplus because the cost of producing this output is less than the value consurners place
Show that decreasing output below the competitive level decreases total surplus because the cost of producing this output is less than the value consurners place on it. Suppose the quantity.r produced is D. 1.} Using the point drawing tool. indicate the competitive equilibrium price and quantity. Label this point 'e.' 2.} Using the triangle drawing tool: indicate the decrease in total surplus relative to the competitive equilibrium from producing Q units of output. Label this triangle 'DWL.' o. $ per unit Carefully liollolnir the instructions above. and only draw the H required objects. ' D G. Units per year
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