Asked by Abigail Kooiker on May 12, 2024
Verified
To enforce the optimum level of emissions a government could set an emissions standard at the quantity:
A) where the MSB curve crosses the MCA curve.
B) located at the vertical intercept of the MSB curve.
C) located at the horizontal intercept of the MSB curve.
D) located at the vertical intercept of the MCA curve.
E) located at the horizontal intercept of the MCA curve.
MSB Curve
The Marginal Social Benefit curve, showing the extra benefit to society of producing one more unit of a good.
MCA Curve
A graphical representation showing the relationship between the amount of pollution abated and the marginal cost of abatement.
Emissions Standard
Regulations setting limits on the amount of pollutants that can be released into the environment by vehicles and other sources.
- Discern the processes and effects of different environmental legislations, including restrictions on emissions, imposts, and transferable certificates.
Verified Answer
MM
Mirti Mariya ArulthasanMay 15, 2024
Final Answer :
A
Explanation :
The optimum level of emissions occurs where the marginal social benefit (MSB) equals the marginal cost of abatement (MCA), which is where the MSB curve crosses the MCA curve. Therefore, choice A is the correct answer as it refers to this precise quantity. The other choices refer to points on either the MSB or MCA curve but do not necessarily represent the optimum level of emissions.
Learning Objectives
- Discern the processes and effects of different environmental legislations, including restrictions on emissions, imposts, and transferable certificates.