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Suppose the total demand for steel in an economy is given by the equation: Q d = 100-P. For simplicity, assume that the private MC

Suppose the total demand for steel in an economy is given by the equation: Qd= 100-P. For simplicity, assume that the private MC of steel production is constant, 20. But because in the production process of steel, pollution gets produced as a by-product and hence, the social MC is higher than private MC at 50.

What is the output level of steel that competitive free markets will produce?

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