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    Microeconomics Study Set 8
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    Exam 15: Externalities, Environmental Policy and Public Goods
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    Figure 15.7 -Refer to Figure 15.7.What Is the Incremental Cost of Increasing
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Figure 15.7 -Refer to Figure 15.7.What Is the Incremental Cost of Increasing

Question 117

Question 117

Multiple Choice

Figure 15.7 Figure 15.7   -Refer to Figure 15.7.What is the incremental cost of increasing the quantity of pollution reduction from Q<sub>B</sub><sub> </sub>to Q<sub>E </sub>units? A) P<sub>E</sub> B) the value of the area Q<sub>B</sub>BEQ<sub>E</sub> C) P<sub>E</sub><sub> × </sub>Q<sub>E</sub> D) the value of the area BEF
-Refer to Figure 15.7.What is the incremental cost of increasing the quantity of pollution reduction from QB to QE units?


A) PE
B) the value of the area QBBEQE
C) PE × QE
D) the value of the area BEF

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