Steel firms in the Bay Area produce steel which has a demand equal to PMB=100-Q, where...

Steel firms in the Bay Area produce steel which has a demand equal to PMB=100-Q, where Q is measured in tons. The firms have a private marginal cost of production equal to PMC=10+Q/2. This industrial activity releases numerous pollutants, some of which are deposited onto nearby land (like heavy metals), and the marginal external damage inflicted upon neighbors’ land is MD = Q/4. At the market quantity (QM), what is the deadweight loss?

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Rahul Sunny answered 2 years ago

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