Question: please answer 2. Say we have a dirty good with the following MB and MC: MB = 50 - 5q MC = 6q BUT the
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2. Say we have a dirty good with the following MB and MC: MB = 50 - 5q MC = 6q BUT the government has done a terrible attempt at a survey and believes the marginal cost is 8q. What is the DWL under i) a price regulation like the pigouvian prescription and ii) a quantity prescrip tion like Cap and Trade if the government operated on this incorrect MC
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