Author Question: Producing paper creates pollution. There is no externality in the consumption of paper. The ... (Read 171 times)

Zulu123 · **on:** Jun 29, 2018

Producing paper creates pollution. There is no externality in the consumption of paper. The efficient quantity of paper is when the

A) marginal social benefit of paper is equal to zero.
B) marginal social cost of the pollution from making paper is equal to zero.
C) marginal social benefit of paper is equal to the marginal social cost of paper.
D) marginal private cost of the pollution from making paper is equal to zero.

Question 2

The figure above shows Sam's budget line. Sam's budget line shows

A) which combinations of gasoline and coffee Sam can afford.
B) which combinations of gasoline and coffee Sam is planning to purchase.
C) whether or not Sam thinks gasoline and coffee are worth their prices.
D) whether or not Sam currently has enough gasoline and enough coffee.