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What is competitive equilibrium quantity

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Reference no: EM133372948

Write the private MB of a flower purchaser as 15 - 3Q, where Q is the number of flowers purchased. Each flower generates 10 units of (marginal) external benefit. The marginal cost of flower production is 2Q.

Rounding to the nearest whole number, if necessary, answer the following questions:

What is the competitive equilibrium quantity?

What is the socially optimal quantity?

What is the DWL?

Reference no: EM133372948

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