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The market demand for reality TV is defined as QD = 4700 - 75P and the...

The market demand for reality TV is defined as QD = 4700 - 75P and the market supply for these shows is QS = -500 + 125P.

c) What is the fee or tax you would need to levy on producers to move this market to the efficient outcome? Explain.

d) Would the fee be larger/smaller/identical if MEC(Q) = 0.01Q? Provide evidence.
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