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    Macroeconomics Study Set 68
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    Exam 4: Market Failures Caused by Externalities Asymmetric Information
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    Refer to the Diagram
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Refer to the Diagram

Question 29

Question 29

Multiple Choice

  Refer to the diagram. From society's perspective, if MB2 and MC1 are relevant, A)  Q4 represents too little pollution abatement. B)  Q1 represents too little pollution abatement. C)  Q3 represents an optimal amount of pollution abatement. D)  Q2 represents too little pollution abatement. Refer to the diagram. From society's perspective, if MB2 and MC1 are relevant,


A) Q4 represents too little pollution abatement.
B) Q1 represents too little pollution abatement.
C) Q3 represents an optimal amount of pollution abatement.
D) Q2 represents too little pollution abatement.

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