Use the Following to Answer Question

question 60

Multiple Choice

Use the following to answer question:
-(Table: Coal Mine Pollution) Use Table: Coal Mine Pollution.The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine.Suppose that the marginal cost from the production process itself (to the producer) is 0.The market-determined quantity of pollution is _____ tons.

• A)0
• B)2
• C)4

---

Definitions:

Variable Manufacturing Overhead

This refers to the expenses in manufacturing that vary in direct proportion to the volume of production, such as utilities and materials.

Standard Hours

The expected amount of time required to complete a task or produce a unit of product under normal conditions.

Variable Manufacturing Overhead

Expenses that vary with the level of production output, such as utilities and materials used in manufacturing.

Direct Labor-Hours

The overall hours logged by employees actively involved in the manufacture of a product or the rendering of a service.