Use the Following to Answer Question

question 135

Multiple Choice

Use the following to answer question:
Figure: Pollution and Efficiency
-(Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency.In this market,whose sulfur emissions are a result of production,an efficient solution is one in which:

• A)MSB < MSC.
• B)MSC < MSB.
• C)total cost = total benefit.
• D)MSC = MSB.

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Definitions:

Prices Increase

A rise in the general level of prices for goods and services in an economy over a period of time, often indicating inflation.

Unemployment Rate

The portion within the labor force actively seeking work yet remains unemployed.

Employed

Refers to individuals who are currently working for pay or profit, including full-time and part-time positions, as well as temporary and seasonal work.

Cyclical Unemployment

Unemployment that results from economic recessions or downturns, reflecting the cyclical nature of an economy, where demand for labor decreases during slow economic periods.