-The Above Figure Shows the Marginal Benefit to a Firm

question 78

Multiple Choice

-The above figure shows the marginal benefit to a firm of polluting in the local river while producing its output,and the marginal cost to the firm's neighbor.The marginal cost of production is zero for the firm.If there is just one neighbor who owns the river,how much pollution is likely to occur?

• A) 0 units
• B) 500 units
• C) 1000 units
• D) more than 1000 units.

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