Use the Following to Answer Question

question 40

Multiple Choice

Use the following to answer question:
Figure 17.7
-(Figure 17.7) Which of the following statements is TRUE?

• A) The efficient quantity of pollution occurs at or below 6,000 units.
• B) At 2,000 units of pollution, the marginal benefit is less than the marginal cost, so there should be less pollution.
• C) At 2,000 units of pollution, the marginal benefit exceeds the marginal cost, so there should be more pollution.
• D) At 2,000 units of pollution, the marginal benefit exceeds the marginal cost, so there should be less pollution.

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Definitions:

Units

Units are individual portions or segments of a whole, such as items produced, sold, or analyzed in a specific context, serving as a basic measure of quantity.

Advertising Budget

The sum of funds designated for the promotion of a brand, product, or service within a certain time frame.

Net Operating Income

A company's profit after subtracting operating expenses, excluding interest and taxes.

Monthly Sales

The total revenue generated from the sale of goods or services in one month.