In Perfect Competition,environmental Externalities Need Not Distort the Allocation of Resources

question 21

Multiple Choice

In perfect competition,environmental externalities need not distort the allocation of resources providing

• A)transactions costs are zero.
• B)average costs are constant for all output levels.
• C)firms install pollution control equipment.
• D)the government sets realistic pollution standards.

---

Definitions:

Financing Company

An organization that provides money or credit to individuals or companies for purchases or investments.

Reasonable Notice

A requirement for the provision of timely and clear information to all parties involved in a legal agreement or procedure.

Written Notice

A formal, documented communication required in many legal situations to officially inform a party of certain actions or intentions.

Oral Notice

Notification or communication of information conveyed through spoken words rather than written form.