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

question 29

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. If the government taxes each ton of glop based on the incorrect estimate of the marginal abatement cost, ____ units of pollution will be omitted.

• A) 3
• B) 4
• C) 5
• D) 6

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Definitions:

Unplanted

Not sown with seeds or not having plants introduced into the ground or an area intended for cultivation.

Differing Languages

The variation and diversity of languages across different populations or geographical regions.

Fragmentation

The process or state of breaking or being broken into small or separate parts.

Renaissance

A period of cultural, artistic, political, and economic “rebirth” following the Middle Ages in Europe, marked by revived interest in Classical learning and values from the 14th to the 17th century.