Production of leather goods generates a negative externality in the form of pollution. It is estimated that the marginal damage of leather goods production is $2.50 per unit produced. The equilibrium quantity of leather goods production is 100 million units and the equilibrium price is $10. eather goods generates a negative externality in the form of pollution. It is estimated that the marginal damage of leather goods production is $2.50 per unit produced. The equilibrium quantity of leather goods production is 100 million units and the equilibrium price is $10.
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