Use the Following to Answer Questions

question 88

Multiple Choice

Use the following to answer questions :
Figure: Efficiency and Pollution
-(Figure: Efficiency and Pollution) Use Figure: Efficiency and Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.A Pigouvian tax of $10 per hectare of pollution will result in a quantity of pollution for which the:

• A) marginal social benefit is less than the marginal social cost.
• B) marginal social benefit exceeds the marginal social cost.
• C) marginal social benefit equals the marginal social cost.
• D) resources are allocated efficiently.

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Definitions:

Supply Management

The process of managing relationships with suppliers and controlling all the materials needed to produce goods or services.

Horizontal Integration

A strategy where a firm grows by acquiring or merging with its competitors in the same industry to achieve economies of scale or scope.

Early Supply Involvement

The practice of involving suppliers at the early stages of a product development process to leverage their expertise and insights for better outcomes.

Competitive Advantage

The unique attributes or circumstances that allow a company to produce goods or services better or more cheaply than its competitors.