Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula
, 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
. Finally, annual market demand (in thousands of tons) is given by the formula.
. Find the efficient quantity that involves no externalities
A) 34,286
B) 60,000
C) 1,200
D) 90,000
Correct Answer:
Verified
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