Suppose a factory emits gunk (pollution) into a river when producing output. The marginal benefit (MB) of gunk abatement to society is MB = 300
Suppose a factory emits gunk (pollution) into a river when producing output. The marginal benefit (MB) of gunk abatement to society is MB = 300 - Q. Unfortunately, the government does not know the true marginal cost of gunk abatement. Suppose the expected marginal cost (EMC) of gunk abatement is EMC = 3Q; however, unknown to the government, the actual marginal cost of gunk abatement is higher: MC = 3Q + 60. Suppose using the expected marginal cost the government imposes an emissions standard to achieve what it believes to be the social optimum. What is the market deadweight loss, given the actual marginal cost of gunk abatement? Deadweight loss from the emissions standard is $ (Enter a numeric response using a real number rounded to two decimal places.)
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