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(Solved): For the purposes of this problem, suppose that illegal drug use is a public bad- one person's drug u ...



For the purposes of this problem, suppose that illegal drug use is a public bad- one person's drug use imposes a negative externality on the rest of society. anti-drug enforcement means that both suppliers and buyers face a risk of being caught and punished. this raises the marginal cost for suppliers, and also raises the effective price of drugs faced by buyers



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