If the MAC = 60 - 0

question 11

Multiple Choice

If the MAC = 60 - 0.25E and MDC = 0.5E the socially efficient scale is equal to ________ units of emissions.

• A)240
• B)80
• C)45
• D)160

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in the income of consumers.

Demand Is Elastic

A situation where the quantity demanded of a product changes significantly with a change in its price.

Total Revenue

The overall amount of money earned by a firm from the sale of its products or services before any costs are subtracted.

Point Elasticity

A measure of elasticity that uses the slope measurement.