The Optimal Level of Pollution Reduction Is That Level at Which

question 51

Multiple Choice

The optimal level of pollution reduction is that level at which

• A)the total benefits of pollution reduction exceeds the total cost of pollution reduction by the largest amount.
• B)the total benefits of pollution reduction equal the total cost of pollution reduction.
• C)the marginal benefit of pollution reduction exceeds the marginal cost of pollution reduction by the largest amount.
• D)the additional benefit of the last unit of pollution reduction equals the additional cost of the last unit of pollution reduction.
• E)both a and d

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Definitions:

Acid-test Ratio

A stringent indicator of a company's ability to quickly convert its short-term assets into cash to cover short-term liabilities, excluding inventory.