If Production Is Characterized by Variable Technology, the Optimal Level

question 155

Multiple Choice

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

---

Definitions:

Nonstochastic

Relates to a process or model that is deterministic, meaning it is not random and outcomes can be predicted with certainty.

Aging Population

Refers to the increasing median age in the population of a region due to declining fertility rates and/or rising life expectancy.

Lifespan

The length of time a person lives, from birth to death, including various factors that influence longevity.

Baby Boomer

A demographic group referring to people born during the post-World War II baby boom approximately between 1946 and 1964.