If Production Is Characterized by Variable Technology and Generates Pollution,the

question 170

Multiple Choice

If production is characterized by variable technology and generates pollution,the optimal level of air quality occurs where _____

• A)the marginal private cost of air quality equals the marginal social benefit.
• B)the marginal social cost of air quality equals the marginal social benefit.
• C)the marginal social cost of air quality equals the marginal private cost of air quality.
• D)government regulators set it.
• E)the average private cost equals the average social cost.