What is the unregulated competitive equilibrium


Problem

Suppose that the inverse demand curve for paper is , the private marginal cost (unregulated competitive market supply) is , and the marginal harm from gunk is.

1. What is the unregulated competitive equilibrium?
2. What is the social optimum?
3. What specific tax t results in the social optimum?

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Microeconomics: What is the unregulated competitive equilibrium
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