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Use the Following Diagram to Answer the Following Questions

Question 64

Multiple Choice

Use the following diagram to answer the following questions.
Use the following diagram to answer the following questions.    -Refer to Gallons. Suppose that the production level was at 2,000 gallons where MC=MB. What would be the maximum amount that consumers would pay producers to reduce production (and pollution) ? A)  $2 per gallon. B)  $12.50 per gallon. C)  $1.50 per gallon. D)  $5 per gallon.
-Refer to Gallons. Suppose that the production level was at 2,000 gallons where MC=MB. What would be the maximum amount that consumers would pay producers to reduce production (and pollution) ?


A) $2 per gallon.
B) $12.50 per gallon.
C) $1.50 per gallon.
D) $5 per gallon.

Correct Answer:

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