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The Ministry of Misallocation has decreed that the production of widgets must be 4 0 0 0 each month and that the production of gizmos
The Ministry of Misallocation has decreed that the production of widgets must be each month and that the production of
gizmos must be each month. Calculate the deadweight loss in each market caused by these restrictions. Note that the
scale of the quantity axis is in thousands.
Price of widgets
What is the deadweight loss in the widgets market?
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Econometric Analysis
Authors: William H. Greene
8th Edition
978-0134461366, 0134461363
