Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, 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 MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. Which of the following gives the market supply curve?
A. Qs = 200,000 - 100P
B. Qs = 0.5P - 500
C. Qs = 150P - 150,000
D. Qs = 150P - 30,000
C. Qs = 150P - 150,000
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What will be an ideal response?
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