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Consider the case of industrial water or air pollution in which pollution is proportional to output and aggregate externality. The people are affected by the pollution and their marginal damage functions are:

MD1= 5Q MD2= 7Q MD3= 13Q

What is the difference between the private and social market supply curves at Q=10?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941733

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