If Production Is Characterized by Variable Technology, the Optimal Level

question 155

Multiple Choice

If production is characterized by variable technology, 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)all costs are absorbed by the polluter