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Use the Following for Any or All of Questions

Question 26

Multiple Choice

Use the following for any or all of Questions below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston.
MSC = 1.5 + 1.25Q MSB = 30 - 2.5Q
MEC = 0.75Q MEB = 0
where Q is the number of trash containers serviced per household per month.
-The dollar value of a waste-end charge that would achieve efficiency in this market is


A) $7.60
B) $11
C) $9.5
D) none of the above

Correct Answer:

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