Calculate the deadweight loss associated with externality

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Suppose the demand for a product is Q = 1200 – 4P; supply is Q= -240 + 2P. Say, marginal external damage is $12 per unit. What is the socially optimal quantity? How many more units will the free market produce? Calculate the deadweight loss associated with the externality.

Reference no: EM131094699

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Calculate the deadweight loss associated with externality : Suppose the demand for a product is Q = 1200 – 4P; supply is Q= -240 + 2P. Say, marginal external damage is $12 per unit. What is the socially optimal quantity? How many more units will the free market produce? Calculate the deadweight loss associate..

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