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Business, 06.11.2019 20:31 Lena3055

The many identical residents of whoville love drinking zlurp. each resident has the following willingness to pay for the tasty refreshment willingness to pay (dollars) quantity first bottle second bottle third bottle fourth bottle fifth bottle further bottles 4 the cost of producing a bottle of zlurp is $1.50, and the competitive suppliers sell it at this price. (the supply curve is horizontal.) each whovillian will consumebottles and receive a consumer surplus of $ producing zlurp creates pollution. each bottle has an external cost of $1. taking this additional cost into account, total surplus per person in the allocation you previously determined decreases to cindy lou who, one of the residents of whoville, decides on her own to reduce her consumption of zlurp by 1 bottle.

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