The market for paper in a particular region has the supply and demand curves QD = 160, 000 2, 000P and QS = 40, 000 + 2, 000P, where Q is measured in hundred-pound lots, and P is price per hundred-pound lot. There is currently no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost associated with the paper production is given by the expression MEC = 0.0002Q. (a) Calculate the competitive price and output, assuming that no attempt is made to monitor or regulate the dumping of effluent.