If MSC = 20 + 0

question 31

Multiple Choice

If MSC = 20 + 0.75A, where MSC is in millions of dollars, and A is the percentage of mercury emissions abatement, then

• A) marginal social cost is $7.5 million when 10 percent of mercury emissions are abated
• B) the MSC function graphs with a horizontal intercept of 20
• C) MSC equals $35 million if 20 percent of mercury is abated
• D) TSC must be declining with higher abatement levels

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