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Suppose That an Industry Emits a Chemical That Pollutes the Ground

Question 5

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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 = Q+30.The market demand curve is 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 = Q+30.The market demand curve is   ,while the marginal social cost curve is MSC = 2Q + 30.What is the socially optimal emissions standard? A)  15. B)  10. C)  5. D)  0. ,while the marginal social cost curve is MSC = 2Q + 30.What is the socially optimal emissions standard?


A) 15.
B) 10.
C) 5.
D) 0.

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