-The Table Above Shows Information About the Costs and Benefits

question 297

Multiple Choice

-The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city.If the marginal external cost is $10 per ton at every quantity of steel produced,the equilibrium quantity when the steel industry is unregulated is ________ tons per week.

• A) 5
• B) 15
• C) 20
• D) 25
• E) 10

---

Definitions:

Transportation Costs

Expenses incurred in moving goods or services from one location to another, including shipping, freight, and logistics fees.

Manufacturers

Companies engaged in the production of goods for sale, typically using labor, machinery, and raw materials.

Price Reduction

A strategy where the selling price of a product or service is decreased to attract more customers or boost sales.