The Marginal External Cost Per Unit of Effluent Discharged into a River

question 8

Multiple Choice

The marginal external cost per unit of effluent discharged into a river by a perfectly competitive chemical industry is currently estimated to be $50 per ton per year.Which of the following state?ments is true?

• A)Efficiency can be achieved with a $50 per ton annual effluent charge.
• B)At the competitive equilibrium output, the marginal social benefit of discharging effluent is $50.
• C)Efficiency can be achieved by banning discharge of effluent.
• D)At the efficient output, the marginal social benefit of discharging effluent will be zero.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple or well-rehearsed tasks.

Pool Players

Individuals who play billiards, a sport involving the use of a cue to strike billiard balls and cause them to move around a cloth-covered table bounded by rubber cushions.

Shots

Injections or vaccinations administered using a syringe and needle intended to provide immunization or therapeutic care.

Social Facilitation

The enhancement of an individual's performance due to the presence of others, often because of increased arousal and motivation.