In Figure 17.1, explain why area D + E + H is the externality cost difference between

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In Figure 17.1, explain why area D + E + H is the externality cost difference between the social optimum and the private equilibrium?
Figure 17.1: Welfare Effects of Pollution in a Competitive Market

450 MCS = MCP + MC9 MCP Ps = 282 C:D ec Pc =240 н 198 MCP MC9 84 ЕMCЯ 30 Demand 225 O = 84 O.= 105 Q, Tons of paper p

Social Optimum Private Change Consumer surplus, CS Private producer surplus, PS, Externality cost, C, Social producer su

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Dec 29, 2017 01:06 AM

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In Figure 17.1, explain why area D + E + H is the externality cost difference between

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At the competitive market outcome e c is the quantity of paper pro...View the full answer

Microeconomics Theory and Applications with Calculus

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