Figure 10-16
-Refer to Figure 10-16. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. In the absence of a pollution permit system, the quantity of pollution would be
A)25
B)50
C)75
D)100

Question

Figure 10-16 
-Refer to Figure 10-16. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. In the absence of a pollution permit system, the quantity of pollution would be
A)25 
B)50 
C)75 
D)100

Quizplus · Accepted Answer

In the absence of a pollution permit system, the quantity of pollution would be 100, as shown by the marginal social cost curve intersecting the demand curve at a quantity of 100.

Figure 10-16 -Refer to Figure 10-16. This Graph Shows the Market for the Market