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 MACE = 9 - Q. The level of pollution, measured in tons of glop, is Q. The socially optimal level of pollution using the actual MAC is ____.
A) 3
B) 4
C) 5
D) 6
Correct Answer:
Verified
Correct Answer:
Verified
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