Calculate deadweight loss associated with the externality

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Reference no: EM131184848

Suppose that demand for a product is Q = 1200 - 4P and supply is Q = -200 1 2P.

Furthermore, suppose that the marginal external damage of this product is $8 per unit.

How many more units of this product will the free market produce than is socially optimal?

Calculate the deadweight loss associated with the externality.

Reference no: EM131184848

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