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.What is the efficient price?
A) $1,400
B) $1657.14
C) $685.71
D) $1,200
Correct Answer:
Verified
Q2: Three hundred paper mills compete in the
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
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
Q12: Limitations of bargaining include:
A) its impracticality.
B) property
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