Use the Following Information for Any or All of Questions

question 2

Multiple Choice

Use the following information for any or all of Questions .
Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions:
MSB = 12 - 0.4Q MPB = 12 - 0.3Q MSC = MPC = 2 + 0.1Q
-In the absence of environmental policy, the number of tires produced in a competitive market is

• A) 20 million
• B) 25 million
• C) 4 million
• D) none of the above

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Definitions:

Recommendation

An advice or suggestion given by someone with knowledge or expertise on a certain matter.

Obligation

A duty or commitment that an individual is required or morally compelled to fulfill.

Indirect Approach

A communication technique in which the main point or message is presented after providing background information and supporting details.

Disrespectful

Showing a lack of respect or courtesy; impolite or rude behavior or speech.