Marginal Benefit of Pollution Abatement Curves May Be Inferred from Other

question 105

Multiple Choice

Marginal benefit of pollution abatement curves may be inferred from other relationships, for example, the relationship between _______ and _______ .

• A) pollution; accounting costs
• B) pollution; economies of scale
• C) the demand for houses; air quality
• D) the speeches at environmental rallies; number of nuclear generating plants

---

Definitions:

Fixed Cost

An expense that remains constant regardless of the volume of products or services manufactured or distributed.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Volume of Activity

Refers to the level of operations or the amount of output produced or services rendered in a certain period.

Fixed Cost

Costs that remain constant in total regardless of changes in the level of activity or volume of production.