Please use the following graph to answerthe question.M1_Price graph, described inthe M1 Price documentWhat is dead weight loss equal to?0205ODemandO 1.5Supply111

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What is dead weight loss equal to? 02 05 00 O 1.5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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34
im assuming B, less than but not sure it could more than
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Write down a model of positive production externality with two firms, in which theproduction activities of one firm directly affects the production/cost of the other firm.State and explain the key assumptions of the model. Using the model, answer thefollowing questions:(a) Explain why the presence of a positive production externality could prevent therealisation of an efficient outcome.(b) Name a possible cure for the positive production externality and explain how itcould solve the inefficiency problem.
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