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Author Question: If more is better, how can you explain that more pollution doesn't violate this principle? What ... (Read 40 times)

mpobi80

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on: Jul 1, 2018
If more is better, how can you explain that more pollution doesn't violate this principle?
 
  What will be an ideal response?

Question 2

If total cost equals 2,000 and quantity produced is 100 units, then
 
  A) fixed cost is 200 and average variable cost is 18.
  B) fixed cost is 600 and average variable cost is 14.
  C) fixed cost is 500 and marginal cost is 15.
  D) Either A or B can be correct.


CAPTAINAMERICA

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Reply #1 on: Jul 1, 2018
Answer to Question 1

When dealing with a bad, we recast it as a good. In this case, we recast pollution as clean air which then allows us to state that more is better, thus upholding our assumptions about preferences.

Answer to Question 2

D


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