Determine the socially optimal level of production

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Consider a hypothetical market for paper. you are given the following demand, supply and MEC curves: P=100-Q MC=1/4Q MEC=10 Draw a diagram that shows the privately and socially optimal outcomes.

Determine the socially optimal level of production and the private level of production.

Determine the difference in Net Benefits under the private market outcome and the socially optimal market outcome.

Reference no: EM131006484

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