Multiple Choice
Suppose that an industry emits a chemical that pollutes the ground water. Without considering the effects of the pollution, the industry has a marginal private cost curve of MPC . The market demand curve is , while the marginal social cost curve is . What is the socially optimal emissions standard?
A) 15 .
B) 10 .
C) 5 .
D) 0 .
Correct Answer:

Verified
Correct Answer:
Verified
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