A Blue Ribbon Committee Has Decided That Acid Rain Should

question 39

Multiple Choice

A Blue Ribbon Committee has decided that acid rain should be reduced and is trying to determine the optimal level of reduction.There are benefits from reducing acid rain (more wildlife and forests,better health,etc.) ,but there are also costs.The committee estimates that the marginal benefit of each unit of reduction is $700 - 5R,where R is units of reduction,and the marginal cost is 2R.If the committee wants to maximize the net benefit from reducing acid rain,what is the optimal level of pollution reduction?

• A)10
• B)20
• C)100
• D)200

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Definitions:

Illegal

An action, item, or behavior prohibited by law and subject to penalties upon violation.

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Financial losses suffered as a consequence of a breach of contract, beyond the immediate scope of the direct damages, not always recoverable under certain contracts.

Special Circumstances

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Contract Itself

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