The quantity supplied and p is the price per lot of paper.

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Qd=160,000-2000P Qs = 40,000+2000P MEC=.0006Qs. Qd is the quantity lots of paper Qs is the quantity supplied and P is the price per lot of paper. The Marginal External Cost=.0006 associated with the production of paper. Suppose the paper mills have the right to pollute. What is the maximum payment recreational users of the streams and rivers affected by the effluent would be willing to pay the paper mills for a single unit of output?

Reference no: EM13328074

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