Suppose a Farm That Is Polluting an Underground Water Supply

question 31

Multiple Choice

Suppose a farm that is polluting an underground water supply faces the following marginal costs for abating units of pollution: 1st unit abated,MC = $250
2nd unit abated,MC = $400
3rd unit abated,MC = $650
4th unit abated,MC = $950
The marginal benefit to society from this farm abating units of pollution are as follows:
1st unit abated,MB = $1000
2nd unit abated,MB = $800
3rd unit abated,MB = $650
4th unit abated,MB = $300
If this farm abates 4 units of pollution,what is the net benefit to society of the final unit of pollution abated?

• A)$0
• B)-$650
• C)$1150
• D)$650
• E)-$1150

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Definitions:

Positive Attitude

A mindset characterized by optimism and constructive thinking, often leading to improved outcomes in personal and professional endeavors.

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The measurement of sales activities effectiveness, often evaluated against sales targets or goals.

Follow-Up Stage

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