# Socially Optimal Level of Output

The demand for speciality glue is given as follows: P = 1200 - 6Q, where P is price per 100 pounds of specialty glue produced and Q is the amount produced and sold in hundreds of pounds. The marginal cost of producing glue for the entire glue industry is as follows: MPC = 700 + 2Q. Let the production of speciality glue result in the following marginal pollution cost: MC = 200 + Q. The MSC = 900 + 3Q. If the firms in the industry attempt to produce a socially optimal level of output, what will that level of output be?

a 2

b 20

c 200

d 2000

And what will the price be for the socially optimal level of output?

© BrainMass Inc. brainmass.com October 9, 2019, 6:12 pm ad1c9bdddfhttps://brainmass.com/economics/production/socially-optimal-level-output-81865

#### Solution Summary

The expert finds the socially optimal level of output in the case.

$2.19