Use the Following to Answer Question

question 11

Multiple Choice

Use the following to answer question:
Figure: The Optimal Quantity of Pollution
-(Figure: The Optimal Quantity of Pollution) The figure The Optimal Quantity of Pollution shows the marginal social cost (MSC) and marginal social benefit (MSB) for firms that pollute the air with sulfur dioxide. Using the figure, the optimal Pigouvian tax per unit of pollution is:

• A) $500.
• B) $250.
• C) $167.
• D) $83.

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Definitions:

Norepinephrine

Norepinephrine is a neurotransmitter and hormone important in the body's fight or flight response, involved in increasing heart rate and blood pressure.

Sympathetic Nerve

Part of the autonomic nervous system that stimulates the body's fight or flight response.

Sympathetic Control

The regulation of bodily functions by the sympathetic nervous system, which activates the body's "fight or flight" response.

Heart

A muscular organ that pumps blood through the circulatory system, supplying oxygen and nutrients to the tissues and removing carbon dioxide and other wastes.