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

Question 92

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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. If the government uses a quota to intervene in the market based on the incorrect estimate of marginal abatement cost, ____ units of pollution will be omitted.


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

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