Question : 41) The marginal benefit of reducing pollution and the marginal : 1384321

 

 

41) The marginal benefit of reducing pollution and the marginal cost of reducing pollution are given by the following equations: MB = -2 + 18, and MC = 2 + 2, where U is the number of units of pollution abatement. What is the level of pollution abatement after which there is no benefit whatsoever in reducing pollution?

A) 0

B) 1

C) 2

D) 3

E) 4

42) The marginal benefit of reducing pollution and the marginal cost of reducing pollution are given by the following equations: MB = -2 + 18, and MC = 2 + 2, where U is the number of units of pollution abatement. What is the net marginal benefit (MB – MC) of abating the first unit of pollution (U = 1)?

A) 10

B) 12

C) 14

D) 16

E) 18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43) Refer to Table 17-1. Suppose a public authority has the mandate to maximize social welfare by choosing the appropriate amount of pollution abatement. The optimal amount of pollution abatement is ________ units and implies a ________ amount of pollution remaining.

A) 8; 0

B) 120; negative

C) 5; positive

D) 70; positive

E) 5; negative

44) Refer to Table 17-1. Suppose a public authority has the mandate to maximize social welfare by choosing the appropriate amount of pollution abatement. The marginal cost of reducing pollution by one unit is ________ at a(n) ________ rate.

A) increasing; constant

B) increasing; decreasing

C) increasing; increasing

D) decreasing; decreasing

E) decreasing; reduced

45) Refer to Table 17-1. Suppose a public authority has the mandate to maximize social welfare by choosing the appropriate amount of pollution abatement. The total net benefit from the optimal amount of pollution abatement is

A) 0.

B) 120.

C) 155.

D) 275.

E) 330.

46) Refer to Table 17-1. Suppose a public authority has the mandate to maximize social welfare by choosing the appropriate amount of pollution abatement. Compared to the optimal level of abatement, pollution abatement of 7 units would ________ total social welfare by ________.

A) increase; 15

B) increase; 110

C) decrease; 110

D) decrease; 125

E) decrease; 160

47) Suppose a farm that is polluting an underground water supply faces the following marginal costs for abating units of pollution:

A) 0 units

B) 1 units

C) 2 units

D) 3 units

E) 4 units

48) Suppose a farm that is polluting an underground water supply faces the following marginal costs for abating units of pollution:

A) $0

B) $650

C) $1150

D) $1300

E) $2250

49) Suppose a farm that is polluting an underground water supply faces the following marginal costs for abating units of pollution:

A) $0

B) -$650

C) $1150

D) $650

E) -$1150

50) Suppose a farm that is polluting an underground water supply faces the following marginal costs for abating units of pollution:

A) because abating the 4th unit adds more to social costs than to social benefits

B) because the total net benefit of abating the 4th unit is greater than the total cost

C) because the total cost of abating 4 units is greater than the total benefits

D) because it is not productively efficient

E) because the farmer has no way to charge a price for the units of pollution abated