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Managerial Economics · End Term · 13 Sept 2026 · May 2026 term · Set 1

Question 13: Determine the socially efficient price and output of dry…

Question 13

+2 marksNumerical answer

In a market for dry cleaning, the inverse market demand function is given by P = 150 - Q and the (private) marginal cost of production for the aggregation of all dry cleaning firms is given by MC =30 + Q. Finally, the pollution generated by the dry cleaning process creates external damages given by the marginal external cost curve MEC = 2Q.
Based on the above data, answer the given subquestions.

Determine the socially efficient price and output of dry cleaning. QS=.............

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Correct answer: 30

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Question 13 of 37 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 13 Sept 2026, in the May 2026 term (Managerial Economics 13 Sep 26 (Session 2)). It carries 2 marks.

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