Suppose that a firm producing copper is dumping mine tailings into the river. Assume that the price of the product represents both its private and social benefit to society. The firm incurs costs listed below under MCp for each additional ton of copper produced.The mine tailings, though, lower the dissolved oxygen levels in the river resulting in fewer fish. Given fewer fish, the local people downstream must fish longer hours. For each additional ton of copper produced, this added cost to the local people is represented byMCE. These costs are represented below.QP.MCp MCE1$30$10$42$30$18$63$30$25S84$30$31$10$30$45$12What will be the socially efficient level output (tons)?O a. 1O b.2OC 3O d. 4

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What will be the socially efficient level output (tons)? a..

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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