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The market for cobalt has Total Benefit = 1 0 0 Q 2 Q 2 and Total Cost = 3 Q 2 . Production of
The market for cobalt has Total Benefit = 1 0 0 Q 2 Q 2 and Total Cost = 3 Q 2 . Production of cobalt causes a negative externality equal to 2 0 Q , so that each unit of cobalt production has a negative externality equal to 2 0 . 4 . If there is no corrective tax, what is the consumer and producer surplus? ( 2 points, no explanation required )
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
