An Environmental Economic Consulting Firm Is Hired to Measure the Negative

question 31

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 MSC = 2Q+30 and the marginal private cost of production to be +30.The market demand curve can be expressed as If the consultants have accurately measured the impact of the pollution externality,the net social benefit of producing at the social optimum (rather than at the private optimum) is

• A) $0.
• B) $112.5
• C) $150.
• D) $250

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Definitions:

Securities Exchange Act

A U.S. law governing the trading of securities, such as stocks and bonds, to protect investors against fraud.

Blue-Sky Laws

State laws in the United States designed to protect investors from securities fraud by regulating the offering and sale of securities to the public.

Interstate Securities

Securities transactions or offerings that occur across state lines, subject to federal laws and regulations.

Wrongful Discharge

The unjust firing or termination of an employee in violation of legal or contractual terms.