A small country can import a good at a world price of 10 per unit. The domestic supplycurve of the good is S = 20 + 10P , D = 400 – 5P.In addition, each unit of production yields a marginal social benefit of 10.Now, suppose demand and supply are exactly as described in problem 3, but there is nomarginal social benefit to production. Ho

3. A small country can import a good at a world price of 10 per unit. The domestic supplycurve of the good is S = 20 + 10P , D = 400 – 5P.In addition, each unit of production yields a marginal social benefit of 10.Now, suppose demand and supply are exactly as...
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