Suppose that an industry emits a chemical that pollutes the ground water.Without considering the effects of the pollution,the industry has a marginal private cost curve of MPC = Q+30.The market demand curve is
,while the marginal social cost curve is MSC = 2Q + 30.What is the socially optimal emissions standard?
A) 15.
B) 10.
C) 5.
D) 0.
Correct Answer:
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