Market equilibrium-social efficient market equilibrium

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The following equations represent supply and demand functions for electricity in a certain city:

P = 100 + 0.3 Q (supply function without external costs)

P = 120 + 0.3 Q (supply function with external costs)

P = 250 - 0.2 Q (demand function)

Compute the net surplus (= PS+CS - total environmental external costs) at private market equilibrium and social efficient market equilibrium.

Reference no: EM131163347

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