Paul's firm produces the same good as Sal's firm.
The total cost of producing qp units in Paul's firm is Cp( qp ) = 8.6 qp + 1.1.
The total cost of producing qs units in Sal's firm is Cs( qs ) = 8.6 qs + 1.1.
What is the efficiency loss if each person's firm produces half of a total of 523 units?
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