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Three Hundred Paper Mills Compete in the Paper Market

Question 10

Multiple Choice

Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula 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 Q<sup>mill</sup> 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 competitive price that would prevail without externalities A) $1,400 B) $1657.14 C) $685.71 D) $1,200 , 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 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 Q<sup>mill</sup> 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 competitive price that would prevail without externalities A) $1,400 B) $1657.14 C) $685.71 D) $1,200 . Finally, annual market demand (in thousands of tons) is given by the formula. 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 Q<sup>mill</sup> 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 competitive price that would prevail without externalities A) $1,400 B) $1657.14 C) $685.71 D) $1,200 . Find the competitive price that would prevail without externalities


A) $1,400
B) $1657.14
C) $685.71
D) $1,200

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