The Marginal Cost of Pollution Is MC = 2Q, While

question 81

Multiple Choice

The marginal cost of pollution is MC = 2Q, while the marginal abatement cost is MAC = 12 - Q. Government regulators incorrectly estimate the marginal abatement cost at MAC_E = 9 - Q. The level of pollution, measured in tons of glop, is Q. The socially optimal level of pollution using the actual MAC is ____.

• A) 3
• B) 4
• C) 5
• D) 6

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Definitions:

Stressful Events

Situations or occurrences that cause tension, anxiety, or strain.

Minor Stressors

Everyday, small-scale events or situations that cause stress, often due to accumulation or frequency.

Accurate Appraisals

The process of assessing or judging something in a correct and precise manner.

Stress

A psychological and physical response to a demand, challenge, or threat, characterized by feelings of tension and anxiety.