Author Question: For a good whose production creates a pollution, when marginal social cost equals marginal social ... (Read 57 times)

Charlie · **on:** Jun 29, 2018

For a good whose production creates a pollution, when marginal social cost equals marginal social benefit, then

I there is no pollution.
II resources are utilized efficiently.
A) I only
B) II only
C) neither I nor II
D) both I and II

Question 2

Last year, after Shirley received a 14 percent pay increase, she increased the quantity of pork chops she purchased by 6 percent. Hence, her income elasticity of demand for pork chops equals

A) 0.43.
B) -0.43.
C) 2.33.
D) -2.33