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

question 92

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 uses a quota to intervene in the market based on the incorrect estimate of marginal abatement cost, ____ units of pollution will be omitted.

• A) 2
• B) 3
• C) 4
• D) 5

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Definitions:

Ages 25-54

A demographic group often considered the prime working age range, reflecting a significant portion of the labor force.

Ages 16-19

A demographic group typically associated with late adolescence and early adulthood.

Efficiency Wages

Wages set above the market equilibrium to increase productivity, reduce turnover, and enhance loyalty among employees.

Shirking

The behavior of avoiding work or responsibilities, often in a workplace setting, which can lead to inefficiency and diminished productivity.