Suppose the market for oranges is perfectly competitive and unregulated.Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges.Suppose QD = 1000 - 100P and QS = -100 + 100P.The price consumers would have to pay for the market to achieve the socially optimal level of production is
A) 5
B) 5.5
C) 6
D) 6.5
Correct Answer:
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