An Environmental Economic Consulting Firm Is Hired to Measure the Negative

question 64

Multiple Choice

An environmental economic consulting firm is hired to measure the negative externalities associated with the pollution from an industry. The consultants calculate the marginal social cost of production to be $\mathrm { MSC } = 2 \mathrm { Q } + 30$ and the marginal private cost of production to be $M P C = Q$ $+ 30$ . The market demand curve can be expressed as $P = 60 - Q$ . The sum of the consumer surplus plus producer surplus at the market equilibrium (i.e. the equilibrium where production decisions do not take into account the externality) is:

• A) \(\$ 0\).
• B) \(\$ 112.5\)
• C) \(\$ 150\).
• D) \(\$ 225\)

Identify examples of survivor bias in research scenarios.

Recognize the importance of using random samples to avoid selection bias.

Interpret positive and negative correlations and their significances.

Assess the validity of research conclusions based on study design and sample selection.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Net Investment

The total amount spent on acquiring, maintaining, and improving fixed assets, minus depreciation.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Market Value

The current price at which an asset or service can be bought or sold.