The Marginal Benefit of Reducing Pollution and the Marginal Cost

question 73

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 net marginal benefit (MB - MC) of abating the first unit of pollution (U = 1) ?

• A)10
• B)12
• C)14
• D)16
• E)18

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Definitions:

Routine Interaction

Regular and repetitive interactions that occur in a set pattern among individuals or groups within social settings.

Prisoner's Dilemma

A standard example of a game analyzed in game theory that shows why two individuals might not cooperate, even if it appears that it is in their best interest to do so.

Intergroup Conflict

Conflict that occurs between different groups or teams, often arising from competition for resources, differing values, or perceived threats.

Prison Warden

The official in charge of the operation and management of a prison.