(Figure: the Optimal Quantity of Pollution)Use Figure: the Optimal Quantity

question 70

Multiple Choice

(Figure: The Optimal Quantity of Pollution) Use Figure: The Optimal Quantity of Pollution.The figure shows the marginal social cost (MSC) and marginal social benefit (MSB) for firms that pollute the air with sulfur dioxide.Using the figure,the optimal Pigouvian tax per unit of pollution is: Figure: The Optimal Quantity of Pollution

• A)$500.
• B)$250.
• C)$167.
• D)$83.

---

Definitions:

Domestic Currency

The currency that is legally in use within a country's borders, serving as the medium for exchange, a store of value, and a standard of account.

Exchange Rate

The value of one currency when being converted to another currency.

Base Currency

The currency against which exchange rates are generally quoted in a given country, typically the currency of the home market.

Counter Currency

The second currency listed in a foreign exchange rate transaction, which can be bought or sold relative to the base currency.