Suppose That the Costs and Benefits of Achieving Water Quality

question 45

Multiple Choice

Suppose that the costs and benefits of achieving water quality in New York are modeled as shown below. Use these relationships for any or all of questions .
MSB = 80 - 2A MSC = 20 + 2A
TSB = 80A - A² TSC = 20A + A²,
where A is the abatement level for conventional pollutants.
-At the benefit-based standard, total social benefits (TSB)

• A) equal zero
• B) are maximized
• C) are minimized
• D) equal TSC