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Suppose That at Current Production Levels the Maximum Corporation Generates

question 43

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Suppose that at current production levels The Maximum Corporation generates $1,000,000 in total social benefits, $700,000 in total private production costs, and $350,000 in total external costs. What is the size of the net benefit or loss imposed on society by the Corporation? Based on your answer, should output at the corporation be increased or decreased?


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