Consider the production of some industrial good that creates air ...

[mp14]

Consider the production of some industrial good that creates air pollution. The table below gives the marginal social cost (MSC), the marginal cost (MC), and the marginal social benefit (MSB) for each level of output (Q).
 
  Q MSC MC MSB 1 3 2 11 2 6 4 10 3 9 6 9 4 12 8 8 5 15 10 7 6 18 12 6 The inefficient market quantity is ________ and the efficient market quantity is ________. A) 4; 3
  B) 6; 3
  C) 3; 4
  D) 4; 6

Question 2

If your labor supply increases when you get a raise, which of the following is TRUE?
 
  A) Your substitution effect is greater than your income effect.
  B) Your substitution effect is less than your income effect.
  C) Your substitution effect equals your income effect.
  D) None of the above answers is correct.

[nixon_s]

Answer to Question 1

A

Answer to Question 2

A

[mp14]

Thanks for the timely response, appreciate it

[nathang24]

YES! Correct, THANKS for helping me on my review