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 = 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.
Correct Answer:
Verified
Correct Answer:
Verified
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