If the MAC = 60 - 0.25E and MDC = 0.5E the socially efficient scale is equal to ________ units of emissions.
A)240
B)80
C)45
D)160

Name: If the MAC = 60 - 0.25E and MDC = 0.5E the socially efficient scale is equal to ________ units of emissions. A)240 B)80 C)45 D)160
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Quizplus · Accepted Answer

The socially efficient scale of emissions is found where the Marginal Abatement Cost (MAC) equals the Marginal Damage Cost (MDC). Setting MAC = MDC gives: 60 - 0.25E = 0.5E. Solving for E, we get E = 80 units of emissions.