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Suppose That an Industry Emits a Chemical That Pollutes Ground

Question 29

Multiple Choice

Suppose that an industry emits a chemical that pollutes 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 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 level of emissions fee would achieve the socially optimal level of output? A) $54. B) $32. C) $12. D) $10. ,while the marginal social cost curve is MSC = 2Q + 30.What level of emissions fee would achieve the socially optimal level of output?


A) $54.
B) $32.
C) $12.
D) $10.

Correct Answer:

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