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Suppose that the following graph shows a free market equilibrium, with Q}; as the equilibrium quantity. Suppl! 6 E _ _ _ _ _ _
Suppose that the following graph shows a free market equilibrium, with Q}; as the equilibrium quantity. Suppl!" 6 E _ _ _ _ _ _ _ _ .1. I I I I I I I Demand I E QUANTITY For an output level exactly at (23, the value of a unit to a buyer is V the cost of a unit to a seller. Suppose a rm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the health of nearby residents who have no business with the company. This scenario is characterized by V , which is an example of V
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