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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Microeconomics - Externalities Question
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the demand for gummy bears is given by Q = 200 - 100P and these confections can be produced at a constant marginal cost of $0.50.
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a. how much will sweet tooth inc be willing to pay in bribes to obtain a monopoly concession from the government for gummy bear production?
b. do the bribes represent a welfare cost from rent seeking?
c. what is the welfare cost of this rent seeking activity?
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