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Suppose an Industry Facing an Inverse Demand Equation Equal to P

Question 10

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Suppose an industry facing an inverse demand equation equal to P = 250 - 2.5Q faces a new pollution control law that shifts its constant marginal cost of production from C1 = 25 to C2 = 50.Compute the social costs of regulation in this industry.

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The social cost will be equal to the cha...

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