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:

Pre-frontal Cortex

The front part of the frontal lobe of the brain, essential in regulating behavior, decision-making, problem-solving, and moderating social behavior.

Source of Energy

The origin from which power is derived to perform various functions, can refer to physical, biological, or technological sources.

Instincts

In Freud’s system, mental representations of internal stimuli, such as hunger, that drive a person to take certain actions.

Conscious

The state of being aware of and able to think about one's own thoughts, feelings, and perceptions.