The Marginal Benefit of Reducing Pollution and the Marginal Cost

question 110

Multiple Choice

The marginal benefit of reducing pollution and the marginal cost of reducing pollution are given by the following equations: MB = -2U² + 18,and MC = 2U² + 2,where U is the number of units of pollution abatement.What is the number of units of pollution abatement after which there is no further social benefit from reducing pollution?

• A)0
• B)1
• C)2
• D)3
• E)4

Understand the economic implications of external costs and benefits and how they relate to market efficiency and failure.

Gain insights into the economic models and their use in simplifying and understanding real-world economic phenomena.

Recognize the effects of economic policies and systems on social welfare and income distribution.

Understand the components and computation of beginning and ending capital balances in partnership accounts.

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Definitions:

Rod Vision

A type of vision that is sensitive to low levels of light, mediated by rod cells in the retina, allowing for night vision.

Lateral Inhibition

A process in neural networks of the brain where an excited neuron reduces the activity of its neighbors, sharpening sensory perceptions and contrasts.

Acuity

The sharpness or keenness of thought, vision, or hearing.

Duplex Theory

A concept in various fields, but could refer to theories that propose two fundamental components or processes that work simultaneously to explain a phenomenon.