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Mushroom Farms Emit Unpleasant Odors That Affect Third Parties

Question 73

Multiple Choice

Mushroom farms emit unpleasant odors that affect third parties. The marginal cost of the odors is MC = 4Q, where Q is the quantity of fumes emitted. Mushroom farmers can reduce odors by using various techniques and technologies; the marginal abatement cost is MAC = 1,200 - 36Q. The efficient quantity of odor emission is ____ fumes.


A) 20
B) 25
C) 30
D) 35

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