Author Question: If production is characterized by variable technology, the optimal level of air quality occurs where ... (Read 48 times)

evelyn o bentley · **on:** Jun 30, 2018

If production is characterized by variable technology, the optimal level of air quality occurs where
a. the marginal private cost of air quality equals the marginal social benefit
b. the marginal social cost of air quality equals the marginal social benefit
c. the marginal social cost of air quality equals the marginal private cost of air quality
d. government regulators set it
e. all costs are absorbed by the polluter

Question 2

When resource markets are free to adjust, temporary differentials will cause
a. b, c, and e to occur
b. the allocation of fewer resources to lower-paid uses
c. the equalization of payments for the same resource in different uses
d. no change in the allocation of resources
e. the allocation of more resources to higher-paid uses