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Managerial Economics · End Term · 13 Sept 2026 · May 2026 term · Set S2

Question 29: Determine the socially efficient price of the paper PS=.…

Question 29

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The market for paper in southern region of India is characterized by the following demand and supply curves : QD=3400-20P and QS=800+20P Where QD is the quantity demanded in 100 pound lots and QS is the quantity supplied in 100 pound lots and P is the price per 100 pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by paper mills. As a result, dumping is widespread. The Marginal External Cost (MEC) associated with the production of paper is given by the curve MEC= 0.05QS
Based on the above data, answer the given subquestions.

Determine the socially efficient price of the paper PS=............

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Correct answer: 100

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Question 29 of 43 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 1 mark.

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