What is the price in the competitive equilibrium

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Problem: A good that generates a negative externality is sold in a competitive market. Demand is defined by P(Q)=600-2Q and supply is defined by P(Q)=Q. The externality from production is E(Q)=0.5Q2.  

Required:

Question 1: What is the quantity produced in the competitive equilibrium?

Question 2: What is the price in the competitive equilibrium?

Reference no: EM132422729

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