Calculate the dead weight loss associated with externality

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Suppose demand for a product Q = 1,200 - 4P and supply is Q = -200 +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 dead weight loss associated with the externality.

Reference no: EM13860823

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