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Suppose that the inverse demand curve for light bulbs is given by P=100-2Q. The marginal private cost (supply) curve is P=40+Q. The marginal externality cost

Suppose that the inverse demand curve for light bulbs is given by P=100-2Q. The marginal private cost (supply) curve is P=40+Q. The marginal externality cost from producing each unit is equal to $12. A) What is the unregulated competitive equilibrium price and quantity? B) What is the socially optimal equilibrium price and quantity? C) What is the unregulated monopoly equilibrium price and quantity? D) What should the government do in each type of market, described in part A and part C above, in order to reduce/eliminate any DWL present

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