An environmental economic consulting firm is hired to measure the negative externalities associated with the pollution from an industry.The consultants calculate the marginal social cost of production to be MSC = 2Q+30 and the marginal private cost of production to be
+30.The market demand curve can be expressed as
If the consultants have accurately measured the impact of the pollution externality,the deadweight loss from producing at the market equilibrium is
A) $30
B) $37.5.
C) $55.
D) $67.5.
Correct Answer:
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