The optimal amount of pollution is NOT zero because
A) it has been found that pollution in moderate amounts actually has positive benefits.
B) there are no benefits to anyone from having zero pollution.
C) zero pollution would be too costly.
D) we don't have the political structure that could accomplish the goal.
Answer: C
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A) P = MC B) P = MR C) MR = MC D) MC = ATC E) P > ATC
In the circular-flow diagram, factors of production are the goods and services produced by firms
a. True b. False Indicate whether the statement is true or false
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A. a situation where social marginal benefit exceeds social marginal cost. B. moral hazard. C. transboundary pollution. D. a negative externality.
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