In Which of the Following Situations Should a Firm Reduce

question 65

Multiple Choice

In which of the following situations should a firm reduce its efforts to abate pollution?

• A) The marginal benefit of abatement is less than its marginal cost.
• B) The marginal benefit of abatement is greater than its marginal cost.
• C) The marginal benefit of abatement is equal to its marginal cost.
• D) none of the above

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Definitions:

Margin Of Error

An indicator of the precision of an estimate or poll, expressing the range within which the true value lies with a specified level of probability.

Confidence

The degree of certainty or trust in a specific context, often used to refer to the level of certainty in statistical conclusions.

Confidence Interval

A band of numerical estimates, from sample data, seen as likely to include the value of an invisible population characteristic.

Sampling Distribution

The probability distribution of a given statistic based on many random samples from a specific population.