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the private market output (Qp) is less, than the social optimum (QS). the private market price (PP) is higher than the social optimum (PS). private
the private market output (Qp) is less, than the social optimum (QS). the private market price (PP) is higher than the social optimum (PS). private firms will earn excess profits if they produce the optimal amount of outp there will be zero output produced without government subsidies
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