Three hundred paper mills compete in the paper market.The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill) 2,where Qmill indicates the mills annual production in thousands of tons.The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill.Finally,annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P.Which of the following gives the function for the marginal social cost?
A) MSC = 1,200 - 4Q
B) MSC = 800 + 4Q
C) MSC = 1,200 + 4Q
D) MSC = 800 - 4Q
Correct Answer:
Verified
Q1: An external cost is:
A) the cost of
Q3: The marginal social cost of production is:
A)
Q4: Limitations of bargaining include:
A) contracts may not
Q5: A positive externality is created if:
A) an
Q6: A negative externality is created if:
A) an
Q7: Three hundred paper mills compete in the
Q8: The Coase Theorem states that:
A) if bargaining
Q9: An action creates an externality if it:
A)
Q10: The economic gain that a positive externality
Q11: Three hundred paper mills compete in the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents