The Marginal Cost of Pollution Is MC = 2Q, While

Multiple Choice

The marginal cost of pollution is MC = 2Q, while the marginal abatement cost is MAC = 12 - Q. Government regulators incorrectly estimate the marginal abatement cost at MAC_E = 9 - Q. The level of pollution, measured in tons of glop, is Q. Based on the government's incorrect estimate of marginal abatement costs, the government thinks the socially optimal level of pollution is ____.

A) 2
B) 3
C) 4
D) 5