An environmental economic consulting firm is hired to measure the negative externalities associated with the pollution from an industry. The consultants calculate the marginal social cost of production to be MSC = 2Q+30 and the marginal private cost of production to be +30. The market demand curve can be expressed as . If the consultants have accurately measured the impact of the pollution externality, the equation of the marginal external cost is:
A) MEC = Q.
B) MEC = 2Q.
C) MEC = 2Q + 10.
D) MEC = 10.
Correct Answer:
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