Use the Following to Answer Questions -(Table: Coal Mine Pollution)Use Table: Coal Mine Pollution

question 66

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Coal Mine Pollution }\\\begin{array} { c c c } \hline \begin{array} { l } \text { Quantity of } \\\text { Pollution } \\\text { (tons) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Benefit }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Cost }\end{array} \\\hline 0 & \$ 800 & \$ 0 \\1 & 700 & 100 \\2 & 600 & 200 \\3 & 500 & 300 \\4 & 400 & 400 \\5 & 300 & 500 \\6 & 200 & 600 \\7 & 100 & 700 \\8 & 0 & 800 \\\hline\end{array}\end{array}$$
-(Table: Coal Mine Pollution) Use Table: Coal Mine Pollution.The table shows the marginal social benefit and cost of various amounts of pollution from a coal mine.Suppose that the marginal cost from the production process itself (to the producer) is 0.The market-determined quantity of pollution is _____ tonnes.

• A) 0
• B) 2
• C) 4
• D) 8

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Definitions:

Overhead

The ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.

Lowest Terms

The equivalent ratio having the smallest possible integers for its terms.

Division

A mathematical operation where one quantity is divided by another, resulting in a quotient and sometimes a remainder.

Administration Fee

A fee charged by an entity for the management services it provides.