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Consider an Economy with Three Consumers, Each with a Marginal

Question 9

Multiple Choice

Consider an economy with three consumers, each with a marginal benefit for a public good of MB = 10 - q.If the marginal cost of providing the good is $0 per unit, what is the DWL arising in the market outcome?


A) DWL = $150
B) DWL = $75
C) DWL = $50
D) DWL = $300
E) DWL = $200

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