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The demand for bags of cement is Qd=1500-10p, the marginal cost of producing cement is constant at $20 per bag. however , a tax of
The demand for bags of cement is Qd=1500-10p, the marginal cost of producing cement is constant at $20 per bag. however , a tax of $5 per bag exists. A government project requires the purchases of 150 bags of cement.
What is the social opportunity cost of 150 bags of cement purchased for the project? use a diagram to explain.
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