Suppose That in the Market for Paper,demand Is P =

question 13

Multiple Choice

Suppose that in the market for paper,demand is p = 100 - Q.The private marginal cost is MC^p = 10 + Q.Pollution generated during the production process creates external marginal harm equal to MC^e = Q.What is the total external harm at the competitive market level of output?

• A) 1350.5
• B) 2025
• C) 672.5
• D) 1012.5

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Fiscal Year

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