A chemical factory dumps waste into a river.The figure above shows the demand curve for the chemical (D) and the marginal private cost (MC) and marginal social cost (MSC) of producing it.
-In the figure above,when the market is unregulated and in equilibrium,the deadweight loss is ________ thousand per month.
A) $250
B) $125
C) $150
D) $50
E) zero
Correct Answer:
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A) produce too much