For the regression equation Q = 100 - 10X + 0.25X2, which of the following statements is true?
A) X2 is the more important variable because it is positive.
B) When X decreases by one unit, Q decreases by 10 units.
C) When X increases by 10 units, Q decreases by 1 unit.
D) The change in Q associated with a one unit increase in X depends on the initial level of X.
D
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Which of the following statements is TRUE about the optimal quantity of pollution?
A) It equals zero. B) Pollution abatement should continue up to the point where marginal cost equals the average total cost. C) Trade-offs exist between producing a cleaner environment and producing other goods and services. D) Firms should be allowed to determine the profit-maximizing amount of pollution abatement.