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The following equations represent the demand and supply functions in the market for some good where an external cost (negative externality) like pollution results in

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The following equations represent the demand and supply functions in the market for some good where an external cost (negative externality) like pollution results in damages of $4 per unit of the good produced: P = 50 - Q MPC = 2 + 05 Solve for (a) the competitive market equilibrium output and (b) the socially efficient level of output for this market

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