(Figure: MSB and MSC of Pollution) the Figure MSB and MSC

question 165

Multiple Choice

(Figure: MSB and MSC of Pollution) The figure MSB and MSC of Pollution shows the marginal social cost and marginal social benefit of pollution.Suppose pollution is unregulated.What is the level of an emissions tax that would move the level of pollution to the socially optimal level?

• A)$100
• B)$800
• C)$500
• D)$300

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Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is true; a threshold for determining whether a result is statistically significant.

Dividend Payout

The portion of earnings distributed to shareholders in the form of dividends, typically expressed as a percentage of the company's earnings.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company. This includes both the materials and labor costs.

General/Administrative Expenses

Overhead or operational costs not directly tied to producing goods or services, such as salaries of administrative staff.