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.

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Definitions:

Defendant

The individual or group that the legal action is brought against in a court setting.

Damages

Financial compensation awarded by a court to indemnify a harmed party for loss or injury resulting from a breach of contract or wrongdoing.

Quantum Meruit

(“as much as is deserved”) a reasonable price paid for requested services.

Equitable Remedies

Judicial remedies requiring a party to act or refrain from acting in a certain way, often used when monetary compensation is insufficient.