An Environmental Economic Consulting Firm Is Hired to Measure the Negative

question 2

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 $M S C = 2 Q + 30$ 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 net social benefit 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) \(\$ 225\)

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Definitions:

Personal Goals

Objectives or aspirations that an individual aims to achieve in their personal life.

Metacognition

The awareness and understanding of one's own thought processes, including the ability to monitor, regulate, and direct oneself to optimal learning or problem-solving strategies.

Lexical Organization

The way in which words and vocabulary are arranged in the brain, influencing language use, comprehension, and acquisition.

Independent Cultural Values

Cultural norms and values that emphasize self-reliance, individual achievement, and personal autonomy.