The Optimal Amount of Pollution Abatement Is Generally Less Than

question 24

Multiple Choice

The optimal amount of pollution abatement is generally less than 100%.Complete (100% ) abatement would be optimal if

• A)the marginal cost of abatement is positive but less than the marginal benefit of abatement.
• B)the marginal cost of abatement is always zero.
• C)the marginal cost of abatement exceeds the marginal benefit of abatement at all levels of abatement.
• D)the marginal benefit of abatement is zero.
• E)none of the above - we cannot even imagine a situation in which complete abatement would be optimal.

Identify the short-run supply curve of a purely competitive firm and its relation to marginal cost and average variable cost.

Understand the concept of elasticity of demand as it applies to purely competitive markets.

Distinguish between the market demand curve and the demand curve faced by an individual firm in pure competition.

Understand the demand curve characteristics for purely competitive firms and industries.

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Definitions:

Ethnic Differences

Variations in customs, norms, and social behaviors among different ethnic or racial groups.

Cultural

Related to the ideas, customs, social behaviors, products, or way of life of a particular society, group, place, or time.

Environmental

Pertaining to the natural world and the impact of human activity on its condition.

Divergent Thinking

A brainstorming technique or process designed to foster creative outcomes by delving into multiple prospective solutions.