A paper mill discharges chemicals into a river which pollutes the shores of a downstream resort area.The private marginal cost,social marginal cost,and marginal benefit associated with the production of paper are given by the following equations: MCP = 5 + Q 
= 10 + 2Q
MB = 35 - 0.5Q.
A competitive free market will produce output of ________ units,and this amount is ________ than the allocatively efficient level of output.
Definitions:
Price Elasticity of Demand
A metric that demonstrates the degree to which the demand for a product changes when there is a fluctuation in its price.
Midpoint Formula
A method used in economics and finance to estimate the elasticity of demand by calculating the average percentage change in both quantity demanded and price.
Price Elasticity of Demand
The degree to which the demand for an item is affected by shifts in its price, calculated as the percentage difference in demand over the percentage difference in price.
Sporting Event
An organized competition or activity involving physical exertion and skill in which individuals or teams compete against each other.
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